Average Days to Pay May be understating actual totals

It has come to my attention, that the average days to pay may be understating the proper value.   Based on results created by one of my customers, and confirmed by Solomon tech support, that there are occasions when payments will not be included in this average.  Let me give you an example of this situation.

Assumptions

  The setup value for number of Pds in Avg Days to Pay set to: 3

Assume that all invoices are due net 30 days from invoice date.

Assume today’s date is January 31, 2004 and these payments were received during the last 3 periods for a specific customer

Original inv Date	Due Date	Paymt Date	No Days to Pay	Comment
1/2/04	2/1/04	1/30/04	28	Include in Calculation
12/2/03	1/1/04	1/5/04	34	Include in Calculation
11/1/03	12/1/03	12/1/03	30	Include in Calculation
10/1/03	11/1/03	12/1/03	60	NOT Included in calculation
8/1/03	9/1/03	1/30/04	150	NOT included in calculation

Only the invoices created with the last 3 months and paid during this period are currently being included in the calculation.   This means that all invoices which were paid but invoiced in 10/31/03 or earlier do not get picked up properly.

There is ongoing discussion in tech support area whether this is a defect or not.  Technically we can increase the number of months to be averaged so that all payments get included in the average.  In the example above, if we had set the number of periods to average AR payments to 10, all payments would be calculated.  

Unfortunately increasing the number of months from 3 to 10 greatly dampens the response ness of this calculation value to reflect current payment trends. 

Conclusion:  Until we get a fix for this “problem”, we need to be wary of the values reported in the average days to pay field in the customer maintenance screen.