Assess how efficient your collection strategy is over time, tracking its evolution with the CEI widget. Completing your DSO (which measures your average payment delays), the CEI compares the amounts cashed in against those that could have been collected within a given period.
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While your DSO is impacted, should your sales be subject to factors such as seasonality, your CEI offers a robust measure of your collection’s performance. Monitor its evolution and react quickly if the curve suddenly goes down! |
A little bit of Math
This CEI is obtained by dividing what you have collected over a period of time by what you could have collected.
Let’s imagine you obtained the following results for your August sales and want to measure the period’s CEI.
What you have collected (numerator)
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🎓 Add up the amounts that were available to collect during the period… €200 [Outstanding amount at the end of the previous period (July)] ➕ €100 [Amount billed during the period (August)] → €300 was collectible …before withdrawing €140 [The outstanding amount at the end of the period (August)] → €300 - €140 = €160 was collected |
What you could have collected, given this period’s performance (denominator)
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🎓 Here, you start by withdrawing €40 [Cash collected from the amount billed during the period (August)] from €100 [Amount billed during the period (August)] → an extra €100 - €40 = €60 could have been collected in August …before adding it to your Outstanding amount at the end of the previous period (July). → €200 + €60 = €260 could have been collected |
And now we divide!
(200 + 100 - 140) / (200 + 100 - 40) = 160 / 260 = 62%
Your dashboard's features
Filter your data from the dashboard’s filter panel to focus on your interest (Country, Account manager, Custom fields…).
Hover your mouse over the widget to display the actions menu allowing you to export the widget’s (filtered) data.