SETUP > Receivable (AR) > DSO
Days of Sales Outstanding (also called Days Receivables) is a calculation used by a company to estimate their average collection period. A low number of days indicate that the company collects its outstanding receivables quickly. Typically, Days of sales outstanding is calculated monthly. The days of sales outstanding (DSO) figure is an index of the relationship between outstanding receivables and credit account sales achieved over a given period. The Days sales outstanding analysis provides general information about the number of days on average that customers take to pay invoices. Days of sales outstanding is considered an important tool in measuring liquidity. Days of sales outstanding tends to increase as a company becomes less risk averse. Higher Days sales outstanding can also be an indication of poor follow up on delinquencies, or higher DSO might be the result of inadequate analysis of applicants for open account credit terms. An increase in DSO can result in cash flow problems, and may result in a decision to increase the creditor company’s bad debt reserve.
DSO Code: Alphanumeric code for the DSO type No of Days:The average number of days to collect receivables Active: Only one code can be selected as active – this is your default DSO for the budget cycle Multiplier: No of Days divided by 30 days AR GL Account: Default Accounts receivable GL Account
SETUP > Receivable (AR) > Sales Channel
In order to achieve a significant sales footprint companies often times use resellers to sell their products. This greatly expands the areas where their product or services can be purchased, This is Channel Sales. A way of bringing products or services to market so that they can be purchased by consumers. A sales channel can be direct if it involves a business selling directly to its customers, or it can be indirect if an intermediary such as a retailer or dealer is involved in selling the product to customers.
Channel Code: Alphanumeric code for the Sales Channel
Sales Channel: Description of the Sales Channel
Sales Account: Sales Account where all the sales channel revenue/ sales / income transactions will be posted
COGS: COGS (Cost of Goods Sold) Account where all the sales channel cost transactions will be posted
SETUP > Receivable (AR) > Product Category
A Product Category is a class of products to which a brand belongs to, for example Pepsi is a brand name, it belongs to the soft drink category. Category management is a retailing and purchasing concept in which the range of products purchased by a business organization or sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product categories (examples of grocery categories might be: tinned fish, washing detergent, toothpastes). It is a systematic, disciplined approach to managing a product category as a strategic business unit
Prod Cat Code: Alphanumeric code for the Product Category
Product Category: Description of the Product Category
Sales Account: Sales Account where all the product category revenue/ sales / income transactions will be posted
COGS: COGS (Cost of Goods Sold) Account where all the product category cost transactions will be posted
SETUP > Receivable (AR) > Price Discount
The price discount is the discount factor which when applied to the list price determines the retail price or selling price of an item. Hence this is the discount allowance or price level adjustment given to a client based upon various factors such as client relationship, volume of business, geographic location etc.
Code: Alphanumeric code for the price discount
Disc%: The percent of discount associated with the code
Disc Account: GL account to capture the discount
COGS Account: COGS (Cost of Goods Sold) Account where all the discount cost transactions will be posted to.
SETUP > Receivable (AR) > Markup %
If you would like to price the product on a cost plus method, defining the markup % is extremely helpful. Once you define the various markup% options, the revenue model would use them in the calculation of list price.
Code: Alphanumeric code for the Markup%
MU%: The percent of markup above cost the item will be sold for
Sales Account: The revenue/income/ sales account
COGS Account: COGS (Cost of Goods Sold) Account where all the cost associated with the transactions will be posted to
SETUP > Receivable (AR) > Customer Maintenance
This section has been created to load in basic Customer information such as customer ID, Customer Name, the Sales Channel, Product Category, Market Bertical that the client is associated with. This classification is further utilized in generating revenue specific reports and in revenue forecasting.
Code: Alphanumeric code for the Customer ID
Name: Customer name
Sales Channel: Sales Channel code associated with the customer
Product Category: Product Category code associated with the customer
SETUP > Receivable (AR) > Market Vertical
A vertical market is a particular industry or group of enterprises in which similar products or services are developed and marketed using similar methods (and to whom goods and services can be sold). Broad examples of vertical markets are: insurance, real estate, banking, heavy manufacturing, retail, transportation, hospitals, and government.
Code: Alphanumeric code for the Market Vertical
Description: Description of the market vertical