Average Collection Period
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Modified on: Sat, 19 Jun, 2021 at 12:50 PM
The Average Collection Period section denotes the actual time taken by any debtor to pay for any invoice. If this number is greater than the payment terms, then the debtors are delaying their payment. If this number is less than the payment terms, then the debtors are paying you early and improving your cash flow. Below the graph is the current month receivable turnover time.
You can customize the Average Collection Period graph based on the last 12 months or the last 6 months. To do this:
Go to the Average Collection Period section.
Click the dropdown in the top right corner of the graph.
Select the range.
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