Average Days to Pay defined
Average days to pay = the total number of days to pay divided by the number of closed invoices.
For Example: Your closed invoices report shows 3 closed invoices for a customer.
Invoice 1 was paid 5 days after the invoice date.
Invoice 2 was paid 10 days after the invoice date.
Invoice 3 was paid 15 days after the invoice date.
Total days 'til paid is 30.
Divide this figure by the number of closed invoices - 30/3 - equals 10 as the average days to pay.
If you enter the payment while you are entering the invoice, using the 'paid today' feature, this invoice would have a 0 days 'til paid. If you combine this with an invoice that was paid 8 days after invoice date - then the average days 'til paid becomes 4. (8 total days divided by 2 closed invoices)
Note: the Average Days to Pay on the Card file record is for the life of the card, not for any date range.