To calculate the accounts receivable collection period, divide the average accounts receivable by the total credit sales and multiply the result by the number of days in the period. The average accounts receivable can be found by adding the beginning and ending accounts receivable balances and dividing by two. This formula provides insight into how long it takes for a company to collect payments from its customers on average.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Add AI to Your Order-to-Cash Process

AR Automation for JD EDwards

AR Automation for SAP

AR Automation for Oracle

AR Automation for NetSuite

AR Automation for PeopleSoft
