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How to use
- Enter Total invoiced.
- Enter Collected amount.
- Enter Credits/adjustments.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Example
Invoices of 100,000 with 75,000 collected and 5,000 credits mean 80,000 settled and an arithmetic outstanding balance of 20,000.
Important notes
Reconcile collections and credits by invoice; the total balance does not show debt age or disputes, both important for collections management.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Settled | 75000 + 5000 | 80,000 |
| Outstanding | 100000 − 80000 | 20,000 |
Frequently asked questions
What if the balance is negative?
It may indicate overpayments or credits above invoices and should be reconciled rather than treated automatically as negative debt.
Is the result a mandatory client price?
No. It is a planning result from your inputs; final pricing depends on scope, market, contract, taxes and risk.
Should I use monthly or annual figures?
Keep all inputs on the same period so annual income is not mixed with monthly hours or expenses.