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Counterparty status and payer score
The status and the payer score appear on every counterparty: in the list, in the edit panel and on the Overview page. They answer two different questions.
Status: Up to date or Late
The status answers one simple question: is something overdue right now?
| Status | Meaning |
|---|---|
| Up to date | No invoice of this counterparty is overdue today. |
| Late | At least one invoice has a due date in the past and is not fully paid. |
A few rules:
- Only invoices you issued count. Credit notes and supplier invoices do not.
- A paid or cancelled invoice never makes a counterparty late.
- An invoice paid in several installments is late as soon as one installment is past its due date and not paid.
- There is no grace period. One day after the due date, the counterparty is Late.
- A counterparty with no invoices is Up to date.
The status changes the moment a payment is matched. Match the payment, and the counterparty goes back to Up to date.
Payer score
The payer score answers another question: does this counterparty usually pay on time?
It is a number from 0 to 100, shown with a label.
| Payer score | Range by default | Meaning |
|---|---|---|
| 100 · Good payer | 80 to 100 | Pays on time. |
| 70 · Watch | 60 to 79 | Pays late sometimes, or leaves some invoices overdue. Keep an eye on it. |
| 45 · Risky payer | 0 to 59 | Pays late often, or leaves a lot unpaid. |
| Insufficient data | No score | Fewer than 3 issued invoices in the last 12 months. |
The ranges are set in Payer scoring. Hover the badge in the list to see the details: timeliness, overdue exposure, the number of invoices used, and when the score was last calculated.
How the score is calculated
Invunion looks at the invoices you issued to this counterparty over the last 12 months. Cancelled invoices and credit notes are left out. It then gives two marks, each from 0 to 100.
1. Timeliness. How late does the customer pay?
- Paid on time, early, or up to 3 days late: 100.
- After those 3 days, each day late costs about 1 point.
- 90 days late or more: 0.
- An invoice that is overdue and still unpaid counts too, as late as it is today.
Big invoices count more than small ones. Recent invoices count more than old ones: an invoice due 3 months ago counts half as much as one due today.
2. Overdue exposure. How much is still unpaid after the due date?
- Nothing overdue: 100.
- The more of what you billed is overdue, the lower the mark.
- An invoice weighs more the longer it stays overdue. It counts fully after a number of days you choose (30 by default).
The score mixes the two marks. You choose how much each one counts in Payer scoring. By default, timeliness counts more.
Two extra rules then apply:
- Long-overdue limit. If 5% or more of what you billed is unpaid for too long after the due date (30 days by default), the score is held just under 80: the customer cannot be a Good payer. At 25% or more, it is held just under 60: the customer is a Risky payer.
- Getting worse. If the customer paid, over the last 3 months, clearly later than before (10 days or more on average), up to 10 points are taken off. This warns you before the score drops.
Example
A customer received 4 invoices. To keep it simple, they were all due around the same time.
| Invoice | Amount | What happened | Days late after the 3 free days | Timeliness |
|---|---|---|---|---|
| FAC-001 | 1,000 € | Paid on the due date | 0 | 100 |
| FAC-002 | 1,000 € | Paid 13 days late | 10 | 89 |
| FAC-003 | 1,000 € | Paid 33 days late | 30 | 67 |
| FAC-004 | 500 € | Still unpaid, 40 days overdue | 37 | 59 |
- Timeliness is the average, weighted by amount: (1,000 × 100 + 1,000 × 89 + 1,000 × 67 + 500 × 59) ÷ 3,500 = 81.
- Exposure: 500 € of the 3,500 € billed is overdue for more than 30 days, so 14%. The mark is 100 − 14 = 86.
- Score: with the default settings, the two marks give 83. That would be a Good payer.
- Long-overdue limit: 14% is unpaid for more than 30 days. That is more than 5%, so the score is held just under 80.
The list shows 80 · Watch. The score is 79.99, rounded to 80 on screen, and it stays in Watch. Once FAC-004 is paid and matched, the limit no longer applies.
When the score updates
The score is calculated again when an invoice, a match, an installment or a credit note of the counterparty changes, and once a day for everyone.
The system counterparties (see below) never get a score. They always show Insufficient data.
Status and payer score together
The two answer different questions. Status is a photo of today. Payer score is the habit over 12 months.
| You see | What it tells you |
|---|---|
| 100 · Good payer Up to date | All good. |
| 98 · Good payer Late | A good customer with one invoice overdue. Often a payment not matched yet, or a one-off delay. |
| 80 · Watch Late | Pays late and has something overdue now. Follow up. |
| 70 · Watch Up to date | Nothing overdue today, but often pays late. |
| Insufficient data Up to date | A new customer, or one you rarely invoice. |
Before chasing a Late customer, check Unmatched transactions. A payment may have arrived and be waiting to be matched. Unmatched payments can also make the score look worse than it is.
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