I manage a group of individuals who manage receivables. They are judged
on 10 and 30 day ratios as a percentage of total receivables. What I
struggle with is removing those account balances from the appropriate
buckets when they otherwise have no control over the management of the
receivable (division management dictates terms on balance, i.e., they
give the customer 3 months to pay the receivable item). At this
juncture, since the analyst has no control over the receivable, my goal
is to remove it from the numbers as though it never occured.

In other words, if the receivable item is in the 10-day bucket (< 10
days old), do I reduce both the 10-day balance and the total receivable
by the value of the item? Do I do nothing with the 30-day balance? What
do I do if the receivable is 30-day? It just never seems to work out
right. Can someone please provide me with a fail-safe methodology for
this pratice? I want to be fair and they expect and deserve the same.

Thank you very much!!

--