Savings Calculator

1.0 A/R Invoices or BOL's payable in the U.S.

Number of A/R Transactions
Import Transactions
ITEM DESCRIPTION EXAMPLE INPUT DATA

Note *    

% of Transactions that are Imports Of the total amount of A/R transactions, what % involve Imports? 45%
% of Import Transactions on Credit What % of the above are granted credit terms? 5%
Average $ amount of Import Transactions What is the average Import transaction amount due? $3,500
 
Export Transactions
% of Transactions that are Exports Of the total amount of A/R transactions, what % involve Exports? 55%
% of Export Transactions on Credit What % of thes aboveare granted credit terms? 80%
Average $ amount of Export Transactions What is the average Export transaction amount due? $1,700
2.0 Days Sales Outstanding (How long it takes to receive payment from the Invoice date)
DSO on Imports without Credit Average number of days payment is received after arrival or due date. 2 0
DSO on Imports with Credit Average number of days payment is received after the due date when shipper has credit terms. 48 30
 
Export Transactions    
DSO on Exports without Credit Average number of days payment is received after departure or due date. 12 0
DSO on Exports with Credit Average number of days payment is received after the due date when shipper has credit terms. 47 30
3.0 Dispute Handling and Short Payments Calculator
ImportTransactions    
% of Import Trans with Disputes Which % of the Imports are disputed? 25%
Avg. Days to Resolve Average number of days needed to resolve a dispute in Imports. 4 1
% of Import Trans Short paid Which % of the Imports are short paid? 10% 0%
Avg. $ amount of Short payment Average amount of short payment for imports when it happens. $ 100.00
 
Export Transactions    
% of Export Trans with Disputes Which % of the Export are disputed? 18%
Avg. Days to Resolve Average number of days needed to resolve a dispute in Exports. 28
% of Export Trans Short paid Which % of the Exports are short paid? 5% 0%
Avg. $ amount of Short payment Average amount of short payment for exports when it happens. $100.00
4.0 Personnel
A/R
Yearly salary cost of A/R Personnel Average salary A/R personnel $32,500.00
 
Sales
Yearly salary cost of Sales Personnel Average salary Sales personnel $55,000.00
 
5.0 Cost of Capital
Yearly cost of capital Your average cost of capital 8%
6.0 Accounts Receivables Process
ITEM Minutes Spent by A/R Pers. per transaction
Proof Copy or BOL Approval

Note *    

Cost of sending PC via fax, email, or mail 5 0
Verifying clients fax, email, or mail address 1 0
Verifying receipt of PC by client 1 0
Sending Reminders to respond to PC 1 0
Receiving fax, or call for changes to PC 1 0
 
Exception Processing (Discrepancies or Disputes)

Note *    

Receiving fax, call, or email on discrepancy 5
Routing, or requesting internal information on discrepancy 5
Follow up on internal request for information on discrepancy 5
Sending correction request to Rating Dept 5
Resending by fax, email, or mail corrected BOL/Invoice Proof Copy to client 5 0.00
Obtaining approval on new invoice from client via fax, email, or call 5 0.00
Historical and Audit Trail on total correspondence and changes 5 0.00
 
Receiving Payments

Note *    

Mail
Receipt, opening, sorting, and distributing 5 0
Lookup Shipper or Client 5 0
Match check to outstanding transaction 5 0
Input receipt of payment in system 5 0
Copy check & store 5 0
Internal handling/routing of check 5 0
 
Deposit
Sort, batch and prepare deposit slip 5 0
Make deposit to Bank 5 0
 
Collections
Send Statements via fax, email, or mail 5 0
Call, fax, or email to collect past due BOL or Invoices 5
Call, fax, or email to inquire on Short Payments 5 0
Call, fax, or email to inquire on combined payments and what amounts to apply to each 5 0
Correcting misapplied amounts to BOL/Invoices 5 0
 
Total A/R Processing Time Consumption in min
 
Next Step: AR Processing