Accounts Receivable & Collections: DSO, CEI, Credit Limits & Bad Debt
Run the AR ledger of a fictional distributor: open balances with SUMIFS, DSO two ways, CEI, an ageing-based allowance, credit limits, payment profiles, a dunning schedule and the bad-debt journal: 8 graded labs.
The first lesson is free — no account needed.
About this course
An accounts receivable and collections course that runs the AR ledger of one fictional distributor in a spreadsheet, for credit controllers, AR clerks, accountants and finance students. You turn an invoice ledger into open items and balances per customer with SUMIFS, measure days sales outstanding with the simple ratio and the count-back method, calculate the collection effectiveness index month by month, age open invoices into buckets and set the allowance for doubtful accounts with a provision matrix, test credit limits and decide whether an order can be released, build a payment profile with average and amount-weighted days late, map overdue invoices to the dunning step that is due today and post the bad-debt write-off, a recovery and the allowance roll-forward with a waterfall chart. Simplified and educational, not accounting advice. The first lab is free.
Lessons
- The Invoice Ledger: Open Items and Balances by Customer with SUMIFSFree
- DSO Two Ways: the Simple Ratio and the Count-Back Method Pro
- Collection Effectiveness Index (CEI): How Much of the Collectible AR Came In Pro
- Ageing Buckets and the Allowance for Doubtful Accounts: a Provision Matrix Pro
- Credit Limits and Utilisation: Over-Limit Flags and the Order-Release Test Pro
- Payment Behaviour: Average Days Late per Customer with AVERAGEIFS Pro
- The Dunning Schedule: Which Reminder Is Due Today? Pro
- Bad-Debt Write-Off, Recovery and the Allowance Roll-Forward (Journal and Chart) Pro