As a corporate controller, you will want to analyze days sales outstanding (DSO). DSO is a measure of the average collection period, that is, the average number of days that a company takes to collect on its accounts receivable. Therefore, analyzing DSO helps to manage your company’s efficiency in collecting outstanding receivables and to define measures to increase the availability of cash.
To analyze relevant measures from various views and in more detail the following categories are provided:
Time
Analysis steps that depict a development over time
Company Code
Country of Company Code
Customer
Country of Customer
Customer Group
Sales Organization
Distribution Channel
Division
Sales District
Aging
Analysis of a company's accounts receivable categorized by the length of time an invoice has been outstanding
Net Due Days
Analysis steps that analyze receivables categorized by their net due days, that is, the number of days in which the invoice is expected to be paid
Days in Arrears
Analysis steps that depict receivables categorized by their days in arrears, that is, the number of days that receivables are overdue. Days in arrears can also have a negative value. This indicates the number of days in which an invoice will be due.
Receivables
The following measures are available to analyze your DSO:
DSO
Overdue DSO
Best Possible DSO
Revenue
Receivables
Overdue Receivables
Open Receivables
Cleared Receivables