How To Calculate Average Days Sales Outstanding in SYSPRO | Arithmix

Calculating average days sales outstanding (DSO) is an important metric for any business looking to manage its cash flow effectively. DSO is a measure of how long it takes for a company to collect payment from its customers after a sale has been made. It is calculated by dividing the total accounts receivable by the average daily sales. This figure gives you an idea of how long it takes for your customers to pay their bills, and can help you identify potential cash flow issues before they become a problem.

What Is Average Days Sales Outstanding?

As mentioned, DSO is the average number of days it takes for a company to collect payment from its customers. It is an important metric for any business, as it can help you identify potential cash flow issues and manage your working capital more effectively. A high DSO can indicate that your customers are taking longer to pay their bills, which can put a strain on your cash flow. Conversely, a low DSO can indicate that your customers are paying their bills promptly, which can help you manage your cash flow more effectively.

DSO is calculated by dividing the total accounts receivable by the average daily sales. For example, if your total accounts receivable is $100,000 and your average daily sales are $10,000, your DSO would be 10 days. This means that it takes your customers an average of 10 days to pay their bills.

When Is It Valuable To Calculate Average Days Sales Outstanding?

Calculating DSO is valuable for any business, but it is particularly important for businesses that operate on a credit basis. If you offer credit terms to your customers, it is important to know how long it takes for them to pay their bills. This can help you identify potential cash flow issues and manage your working capital more effectively.

DSO is also valuable for businesses that have a large accounts receivable balance. If you have a lot of outstanding invoices, it can be difficult to manage your cash flow effectively. Calculating DSO can help you identify which customers are taking longer to pay their bills, and can help you prioritize your collections efforts.

Overall, calculating DSO is an important metric for any business looking to manage its cash flow effectively. By understanding how long it takes for your customers to pay their bills, you can identify potential cash flow issues and manage your working capital more effectively. So if you haven't already, it's time to start calculating your DSO!

How Do You Calculate Average Days Sales Outstanding in SYSPRO

SYSPRO itself isn’t naturally geared towards letting you calculate complex metrics like Average Days Sales Outstanding. As an alternative, teams typically use products like Arithmix to import data from SYSPRO and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like SYSPRO, combine it with data from other systems, and create calculations like Average Days Sales Outstanding.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Average Days Sales Outstanding in Arithmix

Calculating metrics like Average Days Sales Outstanding is simple in Arithmix. Once you've created your free account, you’ll be able to import your SYSPRO data, and use it to create natural language formulas for metrics like Average Days Sales Outstanding.

Arithmix is designed to give you the power to build any calculations you want on top of your SYSPRO data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.