Example

The accumulated promise to pay amount is the total of all promised amounts of all promises to pay that have been created since the previous generation of the collection worklist.

The total amount to be collected is the sum of all the amounts to be collected of all worklist items created during the previous generation of the collection worklist.

For example, 100 worklist items are created after the generation of the collection worklist, which usually takes place in the early morning of a working day. The amount to be collected for each worklist item is 10. Therefore, the total amount to be collected is 1000. After the collection worklist is generated, the collection specialists start their daily work, which is calling the customers on the worklist to get promises to pay. At some point during the day, they have created 30 promises, each with a promised amount of 10. This makes the total promised amount 300. The collection progress is 30%.

This KPI helps you as an accounts receivables manager to manage your team of collection specialists. It is expected that at the end of the day, the collection progress is close to 100%. If you repeatedly see larger deviations from that goal, you might need to assign your resources differently.