Current Balance Divided by Sales
This example shows the calculation of DSO using the current balance divided by sales method:
(10869 x 90) / (5538 + 4566 + 7570)
DSO = 55.35
This table describes how the system calculates additional amounts:
Page Element |
Calculation Information |
---|---|
Days Credit Granted |
The system uses the same calculations as DSO to calculate the days credit-granted amount. The exception is that the system replaces the current period-end balance with the amount of the balance that is due or due in the future. Calculation: open amount - past due amount |
Delinquent DSO |
This is the number of days that a customer takes beyond the Days Credit Granted. Calculation: DSO - Days Credit Granted |
Extended DSO |
This is the number of days beyond the assigned payment terms for a customer. Calculation: Days Credit Granted - Payment Terms Result: The amount of credit that the sales staff grants customers beyond the payment terms. |
Invoice Amount |
The gross amount of the invoice. |
Sales Amount |
The taxable amount of the invoice. |
% of Amount Paid Late |
Calculation: Invoice Amount ÷ Amount Paid Late |