Description
Analysis of customer payment history with a sorted list of open items.
You use this evaluation to determine exactly which customers requirespecial attention in monitoring their credit.

Precondition
The system records a customer's payment history only if you selectRec.pmnt hist. in the company code area of the customer masterrecord.

Output
The program displays the following payment history information:

• Sales figures such as annual sales and authorized deductions. This data
is available in the system and is only issued by this program.

• Information on whether the customer is a net payer or a cash discount
payer. This information is displayed in the field "Type".
The type of payer is determined by means of the payment volume:
A net payer is a customer who usually exhausts the payment term and doesnot take any cash discounts.
A cash discount payer is a customer who usually makes use of the cashdiscount deduction.

• Days in arrears. The average days in arrears are determined as follows:

For each of the last five periods in which payments took place, thepayment amount from each period is multiplied by the average days inarrears from each period. The results are added together and thendivided by the total of the payments from the periods.
The days in arrears are thus weighted with the payment amount.

• Last payment period. The period and the year (for example, 5 93) are
displayed.
In addition to analyzing payment history, this program evaluatescustomer open items. It structures the items it selects using a timeschedule that you can define as you like, and displays them according tobusiness area.
The criteria you can choose for this analysis are as follows:

• Aging schedule for open items by due date for net payment

Displayed next to "Net"
Calculation: Due date for net payment - key date

• Due date forecast using the first cash discount days

Displayed next to "Dsc"
Calculation: Baseline date for payment + cash discount days 1 - keydate

• Probability of payment based on the weighted incoming payments in
the past
Displayed next to "Pay"
Calculation: Baseline date for pmnt + cash disc.days 1 + average daysin arrears

• Days overdue of items that are due

Displayed next to "Ovd"
Calculation: Key date - due date for net payment

Examples of the open item analysis
The item used in these examples contains the following data:
Document date,,,,,,04/01/1992
Baseline date for payment,,,,,,04/05/1992
Terms of payment,,,,,,8 days 5% / 14 days 2% / 21 days net
Key date,,,,,,04/15/1992
The due date for net payment of this item is determined as follows:
Baseline date for payment + net days
The sorted list for this item would appear as follows:
The (*) indicates in which column in the sorted list the item wouldappear for the different evaluations.
Due date for net payment
Due date for net payment - key date = number of days until the duedate for net payment
04/26 - 04/15 = 11 days
Display in the list:
-------------------------------------------------------------
I 1 I 2 I 3 I 4 I 5 I 6 I
-------------------------------------------------------------
I I from 1 I from 11 I from 21 I from 31 I from 41 I
I to 0 I to 10 I to 20 I to 30 I to 40 I I
-------------------------------------------------------------
(*)
Explanation of column 1:
Items displayed here are overdue.
Explanation of column 6:
Items displayed here are due in 41 days or more.
Cash discount 1 due date
Baseline date for payment + cash discount days-1 - key date
04/05 + 8 - 04/15 = -2 days
Display in the list:
-------------------------------------------------------------
I 1 I 2 I 3 I 4 I 5 I 6 I
-------------------------------------------------------------
I I from 1 I from 11 I from 21 I from 31 I from 41 I
I to 0 I to 10 I to 20 I to 30 I to 40 I I
-------------------------------------------------------------
(*)
Explanation of column 1:
Items displayed here are overdue for the first cash discount.
Explanation of column 6:
Items displayed here are due in 41 or more days for the first cashdiscount.
Forecast of incoming payments
Baseline date for payt + cash disc.days 1 - key date + days inarrears
04/05 + 8 - 04/15 + 25 = 23 days
Display in the list
-------------------------------------------------------------
I 1 I 2 I 3 I 4 I 5 I 6 I
-------------------------------------------------------------
I I from 1 I from 11 I from 21 I from 31 I from 41 I
I to 0 I to 10 I to 20 I to 30 I to 40 I I
-------------------------------------------------------------
(*)
Explanation of column 1:
Items displayed here are overdue as regards cash discount 1.
Explanation for column 6:
Items displayed here are due in 41 or more days for the first cashdiscount.
Days overdue
Key date - due date for net payment
04/15 - 04/26 = -11 days
Display in the list:
-------------------------------------------------------------
I 1 I 2 I 3 I 4 I 5 I 6 I
-------------------------------------------------------------
I I from 1 I from 11 I from 21 I from 31 I from 41 I
I to 0 I to 10 I to 20 I to 30 I to 40 I I
-------------------------------------------------------------
(*)
Explanation of column 1:
Items displayed in this column are open but not yet due.
Explanation of column 6:
Items displayed here have been overdue for 41 or more days.

Note
The analysis types "Net", "Dsc", "Pay" are a future time frame forforecasting incoming payments. "Ovd" is the time frame for the past foranalyzing overdue items.
To estimate the probability of incoming payments, you should alwaysrequest a sorted list by due date, cash discount days 1, and incomingpayments forecast. Normally, the cash discount days 1 due date shows theearliest incoming payment, the latest due date and for the forecast ofincoming payments the probable time of the incoming payment.