Hey all, have a sell side deal where we are adding back the discount taken by a customer bc per their LTA and new terms, the will no longer be receiving it (3%). From a NWC perspective, how do I adjust the inflated months of AR where the discount is no longer applied? Is the DSO approach the best way? Using the historical DSO to normalize the inflated months? Any suggestions would be appreciated. My manager is on Christmas PTO and decided to leave me with this project 😂

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Do you have that specific customer’s AR balance by month?

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Nope!

Should be able to rebuild with sales and payment GL data.

The GL doesn’t tag every customer it’s pretty messy. If I were to have a historical monthly AR for that customer, would I just remove the discount taken each month? I thought I needed to adjust the inflated months only where the discount is no longer being taken? Now I’m confused lol. Are we adjusting inflated AR with no discount or AR with a discount?

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DSO would be easiest

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