Payment terms and days-to-pay leakage
Agreed terms against actual days to pay, early-pay discounts taken late, and the cost of both by account.
The business question
What do payment terms and late early-pay discounts cost us by account?
What it does
Compares agreed terms with actual days to pay from receivables and prices the gap, including early-pay discounts taken late. The cost of terms becomes an account-level number.
What’s inside
Composed from the platform’s own objects, so it is a configuration you can open, not a document.
- View: terms vs actual by account
- Formula: cost of terms
- Integration: receivables
Uses these metrics
The measures that call for this template when they move, each with its own page.
- Days to pay against termsMetricAct when: More than x% of accounts asking for relaxed terms, or days beyond terms rising
- Interest ratesMetricAct when: A rise over 50 bps in a market
Commercial context required
What Revomo reads to run it. Everything else in the template is derived from these records.
- Integration: receivables
Relevant industries
See this template in Revomo.
We will show the Payment terms and days-to-pay leakage running on representative data, or on a slice of your own, and what it would take to run it on yours.