To calculate the average collection period, divide the average accounts receivable by the average daily sales. Then, multiply the result by the number of days in the period. This formula helps assess the efficiency of accounts receivable management in converting credit sales into cash.
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

AR Automation for MS Dynamics
Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.