cash management

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taskey
taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
ok, i have a list of monthly sales

debtor terms are that payment is due 60 days after the end of the month in which the sale is made.

jan opening debtors is 3.5m which included dec sales of 2m and nov sales of 1.5m

so do I....

add dec and jan sales to get feb receipts balance
jan and feb to get mar receipts balance

etc or am i barking up the wrong tree??

thanks

Tracy

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  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    If you start fresh from the zero, you are right as far as I can tell.

    Basically if you have a 30 days terms, it would mean only last months items are outstanding, so with 60 days terms, you got two months of sales outstanding that hasn't been paid yet.


    If you use the debtor figure as a basis and add sales and deduct payments, please be aware that you already have the December sales listed in the figure for the first month, so it just needs the January sales added and the payments (of the November sales) deducted to get to the debtors figure at the end of the first month. Sorry, not to confuse you, just to make sure you don't use the same figures twice!
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
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    many thanks, that is what i was confused with, why would i use the same figures twice?? :)

    sorted now

    thanks
    Tracy
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