Days Sales Outstanding

The Days Sales Outstanding widget indicates the average number of days the company requires to collect the payment for the sale of goods or services. This banner widget is attached to the Finance Manager page.

The Days Sales Outstanding (DSO) can be assessed monthly, quarterly, or annually. The DSO is used to determine the effectiveness of the company’s credit and the collection effort towards the credit of customers. Additionally, the DSO monitors the amount of cash invested in the receivables. The formula for the DSO calculation:

DSO = (Accounts Receivables/Net Credit Sales) * Number of Days

For example

A company has an average accounts receivable balance of $200,000 (Accounts receivable) and annual sales of $1,200,000 (Annual revenue). The DSO calculation:

DSO = ($200,000 ÷ $1,200,000) × 365 Days = 60.8 Days Sales Outstanding

The calculation indicates that the company requires 60.8 days to collect an invoice.

The widget retrieves information from Taxonomies (tfgld1170m000) and tfgld1670m000 session in Infor LN to calculate the accounts receivable ratio. The Taxonomies (tfgld1670m000) session in Infor LN is used to map the accounts for this widget. The widget displays a graphical representation based on the calculated value for the selected period.
Note: 
  • You can select the Include Non-Finalized Transaction check box on the Configure Widget screen in the Selection widget to include the amounts that are not finalized.
  • The GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards) accounting rules are applied.
On the widget, you can:
  • View the Company name.
  • Click Company name to view the details of the widget configuration.
  • Click Dropdown to modify the period. A line graph displays a monthly DSO for the fiscal year if YTD option is selected. A bar chart displays the DSO for the selected month and previous month if the MTD option is selected.
  • Rest the pointer on the graph to view the exact value.