Days sales outstanding (DSO) estimates collection time for credit sales. Divide average trade receivables by period net credit sales and multiply by the period's days, using consistent currency and VAT treatment. The result is days.[1]
Including all sales, including immediately paid orders, creates a different denominator and can make collection time appear shorter. Declare that choice. Check large aged invoices separately: one average does not identify late-paying customers or disputed balances and can hide concentrated collection risk.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.