Payment Performance of Debtors is the average time that customers take to pay their invoices, regardless of the balance on the account date. The low turnover of receivables and the high performance of payment is possible by stating that customers have cleared their priorities but took a long time.
To get performance reports at the group level and customer level, you need to get the detailed position of debt collection. Use a customer statement that shows the actual turnover and performance of the customer.
To view the General Ledger Payment Performance report:
- Enter Gateway of Tally -> Ratio Analysis.
- Drill down from Receivables turnover in days.
- Select a party from the list of party ledgers and press Enter to drill down.
The General Ledger Payment Performance statement shows the receivable turnover in days. This is the balance multiplied by the total number of days in the period by the total number of sales. This rate should be used in conjunction with the Average Performance of actual payments and the customer’s payment history to access how long it will take to pay the outstanding balance.
The actual payment history is provided in the table of each invoice paid by the customer. It shows when the invoice has been paid, how long it will remain, and what the payment delay is. The average performance of the customer is shown at the bottom of the screen.