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