Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: sditto who wrote (30418)	8/24/2000 5:32:44 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

sditto, The interval of time between work being performed and billed is often referred to as work in progress (WIP). The interval of time between a bill being rendered and payment received is often referred to as Accounts Receivable (A/R). Some companies ... simply report the sum and call it A/R. Let me get this straight. Are you telling me that a company will legitimately put A/R on its balance sheet for which there is no invoice? And that that practice meets the muster of an independent audit? --Mike Buckley

To: sditto who wrote (30418)	8/25/2000 12:05:34 AM
From: DownSouth	Read Replies (3) \| Respond to of 54805

The interval of time between work being performed and billed is often referred to as work in progress (WIP). The interval of time between a bill being rendered and payment received is often referred to as Accounts Receivable (A/R). Sorry, ditto. I think you have it wrong. Until a client gets an invoice, there is on increase in A/R. WIP is not counted as A/R. Usually WIP will be counted as "backlog", which is seldom revealed in financial statements. The goal is to convert backlog into to an account receivable by performing whatever is required (passing acceptance criteria, shipping product, etc.) and invoicing the customer. The interval of time between a bill being rendered and payment received is almost always referred to as "Days Sales Outstanding" (DSO).