Finance What are the ideal ranges for A/R and A/P?


There is no "ideal" number of days for A/R policy.

If your cash account is flush, you can provide more generous credit terms to your customers, which will increase demand for your products.

But, it will result in more cash tied up in A/R.

A/P policies also affect your cash account, and your "Production After Adj" cell on the Production screen (30 days is standard).

You can test different A/R and A/P policies by using the Proformas.

Please Note: While A/R and A/P decisions are made in the Marketing section, they are in fact Finance decisions, and are uploaded as part of the Finance decision set.