Invoice Prioritization
By default, the app comes with a prioritization for both business objectives - (1) realizing Cash Discount and (2) paying on time.
The app comes with three different priority groups (KM ID: PRIORITY_GROUP).
Discount: For all invoices with realizable Cash Discount.
On-Time: For all invoices with no realizable Cash Discount and before the net due date.
Overdue: For all overdue invoices with regards to the net due date.
In addition to the priority group, there’s an invoice prioritization available that helps the users to identify the most relevant invoices based on the company’s policy. The standard prioritization is visible in the table below and can be adjusted by overwriting the KM KPI KPI_Cases_CLASSIFICATION_OnTimePaymentOptimizationPriority.
The day values (5, 10 and 14) and amounts (100, 500, 1.000 and 10.000) in the table below are the default thresholds but can be adjusted by updating the variables (see Variables).
Critical Processing Time: 5 days; criticalProcessingTime
Regular Processing Time: 10 days
Critical Amount: 1.000; criticalAmount; regularProcessingTime
High Amount: 500; highAmount
Min. Amount: 100; lowAmount
High Inv. Value: 10.000; highInvoiceValue
Critical Overdue Time: 14 days; criticalOverdueTime
So when updating the variable for Critical Processing Time to 7 days, all priorities having 5 days in the classification will be updated to 7 days.
Prio | Group | Discount | Inv. Value | Time to Due Date |
---|---|---|---|---|
01_CRITICAL | Discount | >${criticalAmount} | / | / |
01_CRITICAL | Discount | >${highAmount} | / | <= ${criticalProcessingTime} days until CD due |
01_CRITICAL | Overdue | >${highInvoiceValue} | >${criticalOverdueTime} days overdue | |
02_HIGH | Discount | >${highAmount} | / | > ${criticalProcessingTime} days until CD due |
02_HIGH | Discount | >${lowAmount} | / | <= ${criticalProcessingTime} days until CD due |
02_HIGH | Overdue | / | / | >${criticalOverdueTime} days overdue |
03_MEDIUM | Discount | >${lowAmount} | / | <= ${regularProcessingTime} days until CD due |
03_MEDIUM | On-Time | / | / | <${regularProcessingTime} days until net due date |
04_LOW | Discount | >${lowAmount} | / | > ${regularProcessingTime} days until CD due |
04_LOW | On-Time | Others |