You may observe that a customer's Customer Score label (Good/Poor/Risk) differs significantly from their Average Days Collected (ADC) value. Both metrics are important and significant for different reasons.
Customer Score is a Tesorio-calculated filter based on the average Days Beyond Terms a specific customer tends to pay. It is calculated from the due date. The focus is on creditworthiness, risk, and lateness relative to the payment terms.
Average Days Beyond Terms | Score |
0 - 15 | Great |
15 - 45 | Good |
45 - 90 | Poor |
> 90 | Risk |
ADC Predicted Pay Date is a filter based on the average days it takes to collect. It is calculated from the invoice date. The focus is on speed of collections and helps you calculate cash flow timing more accurately. ADC can be highly sensitive to a few historic outliers, making it a poor indicator of current risk.
Please reference the Average Days Collected calculation in our Dashboard Cash Trends Article.
Example
Even with the same terms, the averages can differ due to the mix of invoices used in the calculation, as DBT is designed to be a better measure of current risk.
Customer A (Good Score): ADC is high (e.g., 59 days) because of one or two ancient, outlier invoices that were paid several hundred days late, skewing the overall average. However, 90% of their recent, high-value payments are on time (Low DBT).
Customer B (Risk Score): ADC is high (e.g., 59 days) because the customer is consistently paying 20-30 days past the due date on the majority of their invoices. This pattern of lateness results in a high DBT and a Risk label.