Average Days Late (Weighted), available on the Customer Hub > Insights, measures, on average, how late customers pay their invoices, giving more weight to larger invoice amounts.
This means bigger invoices have a greater impact on the result than smaller ones. It's a more accurate way to understand how late your major payments are, rather than treating all invoices equally.
How the Calculation Works
Multiply each invoice's amount by its number of days overdue.
This gives the weighted contribution for each invoice.Sum all the weighted contributions to get the Total Weighted Sum.
Sum all the invoice amounts to get the Total Invoice Amount.
Divide the Total Weighted Sum by the Total Invoice Amount.
The result is your Average Days Late (Weighted).
Formula
Example
Invoice ID | Amount | Days Late | Weighted Contribution |
INV-001 | $100,000 | 30 days | 100,000 × 30 = 3,000,000 |
INV-002 | $5,000 | 45 days | 5,000 × 45 = 225,000 |
INV-003 | $50,000 | 15 days | 50,000 × 15 = 750,000 |
Total Weighted Sum = 3,000,000 + 225,000 + 750,000 = 3,975,000
Total Invoice Amount = 100,000 + 5,000 + 50,000 = 155,000
Rounded to 26 days.
Notes
If you wish to have only certain invoices to be considered for this metric, please contact your Account Manager as Kolleno can set that up for you.
Regardless of custom filters you want to add, the CLOSED invoices will *always* be excluded.