CEI is commonly used by credit and collections teams to evaluate collection performance without relying solely on monthly sales volume. Organizations define the opening receivables population, current-period receivables, exclusions, credits, and ending current receivables before calculating the ratio. Because these inputs and exclusions vary, CEI formulas should be documented and compared only on a consistent internal basis.
Collections Operations
Canonical Defined Term
Collection Effectiveness Index (CEI)
IN PLAIN WORDS
Sources listed on this page
The Collection Effectiveness Index (CEI) is an operating KPI that compares collections during a period with the receivables an organization treated as collectible for that period.
HOW IT IS USED
How this term is used
Why this matters
A documented CEI can complement DSO and aging data by showing whether the collection process is converting the period’s collectible ledger as intended.
FAQ
What does Collection Effectiveness Index mean?
The Collection Effectiveness Index (CEI) is an operating KPI that compares collections during a period with the receivables an organization treated as collectible for that period.
Is Collection Effectiveness Index defined by a statute?
This entry uses an operating or accounting definition. It does not cite a statute, because the term is not stated here as one statutory category.
What else is Collection Effectiveness Index called?
Other names used for this term include CEI, Collections effectiveness metric, Collection performance index.
Sources
This entry uses an operating or accounting definition. Homepage-only links are omitted. No statute is cited, because this definition does not rely on one.