Credit Management Scorecard

Tracking Customer, Supplier & GST Credit Performance

Customer Credit Supplier Credit GST Credit

Reporting Period

Q3 2023

Last Updated

Sept 18, 2023

This scorecard tracks credit management KPIs to optimize working capital and ensure compliance. Metrics are reviewed weekly by the finance leadership team.

Customer Credit

₹18.2M

Outstanding Receivables

8.3% vs last month

Supplier Credit

₹9.7M

Outstanding Payables

3.1% vs last month

GST Credit

₹2.4M

Available Credit

12.5% utilization rate
Credit Metric Current Last Week Target Trend Status

Days Sales Outstanding (DSO)

Avg. collection period

 42 days 45 days ≤40 days
Needs Attention

Overdue Receivables

% of total AR >90 days

 8.2% 9.1% ≤5%
Improving

Days Payable Outstanding (DPO)

Avg. payment period

 35 days 32 days 30-40 days
Optimal

Early Payment Discount Capture

% of eligible discounts

 68% 65% 75%
On Track

GST Credit Utilization Rate

% of available credit used

 87.5% 85.2% ≥90%
On Track

GST Reconciliation Time

Avg. days for credit matching

 12 days 14 days ≤10 days
Improving
On Track: Meeting targets
Needs Attention: Close to target but needs improvement
Off Track: Significantly below target
Improving trend

Key Insights

  • Customer Credit Improvement

    DSO reduced by 3 days but still above target. Overdue receivables decreasing but require focused collection efforts.

  • Supplier Credit Optimization

    DPO within optimal range. Early payment discount capture improving but still below target - opportunity for savings.

  • GST Credit Efficiency

    Utilization rate improving but reconciliation time still above target. Process automation could reduce time further.

Action Plan

  • Accelerate Collections

    Implement targeted collection strategy for top 5 overdue accounts by Sept 30

  • Optimize Discount Capture

    Review vendor terms and create calendar for discount opportunities

  • Automate GST Reconciliation

    Evaluate software solutions to reduce matching time to ≤7 days by Oct 15

  • Supplier Credit Review

    Renegotiate payment terms with key suppliers by Oct 10