Program RFDOPR20 enables you to carry out a detailed analysis of the payment history of customers. It also contains a forecast of payment volumes and payment arrears, based on the existing payment history.
Requirements
Information on the payment history of a customer is only stored in the system if you select the field Rec.pmnt.hist. in the company code-dependent area of the customer master record.
Output
The following information on the payment history is displayed:
Customer type
Using as a parameter the payment volume in the periods under consideration, the system determines whether the customer in question is generally a net payer or a cash discount payer.
The type of customer is determined as follows:
If the customer usually utilizes the full payment period without claiming a cash discount deduction, he is a net payer.
If the customer usually pays in time to claim a cash discount deduction, he is a cash discount payer.
Arrears in days
The average days in arrears are determined as follows: Every incoming payment in the periods concerned is multiplied by its days in arrears. These amounts are added together and then divided by the total amount from all the incoming payments. This process ensures that the days in arrears are weighted by the payment amount.
Forecast for arrears in the next period
This forecast is based on the customer type that the system determined and attempts to make a forecast for the arrears in the subsequent period based on the payment volume data and the total resulting from the above mentioned calculation involving the payment and days in arrears. In this case, only data from the chosen periods is used.
To make this forecast, the system carries out separate forecasts for the payment volume and the total described above, and then determines the number of days in arrears by division.
Linear, logarithmic, exponential and potential models are used for the forecast, the optimal model being chosen in each case.
By choosing the menu option "Forecast" you can display more information, such as:
Payment volume in the periods under consideration
Trend for days in arrears (gradient of the curve for the days in arrears, based on the forecast value for the subsequent period)
Specifications on how the forecast was created (including a forecast for the payment volume in the subsequent period)
For the information described above, the entries for "Number of periods" and "With current period" are important. The "number of periods" determines how many periods are to be taken into account in the calculations (these are always the most recent periods). The current period, which is only taken into account if the checkbox "With current period" is marked, is an exception. If the current period is included, it distorts the forecast, if it contains postings which are not complete.
Further information offered by the program includes:
Volume of open items
Breakdown of number of payments, payment volume and arrears by period, where the last values are both subdivided into payments with cash discount or net payments. In these cases, the days in arrears are determined by weighting the amounts by the volume of the payment in question. You can display the results as a bar chart by selecting the menu option "Graphic".
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