Days sales outstanding (DSO)
In Arabic متوسط أيام التحصيل (DSO)
A measure of how many days, on average, a business takes to collect payment after a credit sale, worked out from receivables and credit sales.
In plain words
DSO turns a receivables balance into time. A distributor on 30-day terms with a DSO of 50 is, on average, waiting 20 days longer than agreed, and that gap is cash tied up in customers rather than in stock.
The usual formula divides closing receivables by credit sales for the period and multiplies by the days in it. Track it month by month, and beside the aging, which shows which customers drive it.
The common mistake is including cash sales in the sales figure. Cash sales never sit in receivables, so adding them makes collection look faster than it is.
- Receivables, 2026-03-31
- SAR 186,000
- Credit sales in March
- SAR 180,000
- Days in the period
- 31
- 186,000 ÷ 180,000 × 31
- 32.03
- DSO
- 32 days
In Axon Suite
How Axon Suite handles it
Axon Suite ages every open invoice by its due date as at any day you choose, and gives each customer a running-balance statement. DSO is worked out from those figures.
Feature
Aging and party statements
Aging buckets every open invoice and bill by its due date. A statement gives one customer or vendor their running balance with the same aging beneath it, printed in Arabic or English.
Open: Aging and party statements