DSO (Days Sales Outstanding) is generally your Accounts Receivable Balance (AR) divided by Average Daily Sales (ADS). However, since some payors may not have any Revenue associated with them, we must use the Responsibility assigned to them during the 90 days period.
Reports printed based on the total amount of your Accounts Receivable are calculated as follows:
DSO = AR / ADS
Reports printed based on a partial responsibility of your Accounts Receivable are calculated as follows:
DSO = AR / ADR
Examples: Aged by Payor Responsibility, Aged by Customer Responsibility
Average Daily Sales (ADS) can be calculated by running an Revenue report for the 90 day period ending with the report date.
Average Daily Responsibility (ADR) can be calculated by running an Audit by Responsibility report for the 90 day period ending with the report date.
Tell us what you think.
You must be logged in to post a comment.