How To Calculate Days Sales Outstanding in JD Edwards Enterprise One | Arithmix
Learn how to calculate Days Sales Outstanding (DSO) in JD Edwards Enterprise One with our step-by-step guide. Improve your financial analysis and cash flow management with this essential skill.
Calculating Days Sales Outstanding (DSO) is an important metric for any business. It helps you understand how quickly your customers are paying their invoices and can give you insight into your cash flow. While there are many ways to calculate DSO, this article will focus on how to do it in JD Edwards Enterprise One.
What Is Days Sales Outstanding?
Days Sales Outstanding 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 accounts receivable balance by the average daily sales. The result is the number of days it takes for a company to collect payment from its customers.
For example, if a company has an accounts receivable balance of $100,000 and its average daily sales are $10,000, its DSO would be 10 days. This means it takes the company an average of 10 days to collect payment from its customers.
When Is It Valuable To Calculate Days Sales Outstanding?
Calculating DSO is valuable for any business that extends credit to its customers. It can help you identify trends in payment behavior and adjust your credit policies accordingly. For example, if you notice that your DSO is increasing, it may be a sign that your customers are having trouble paying their bills on time. This could prompt you to tighten your credit policies or offer incentives for early payment.
DSO can also be used to benchmark your company against others in your industry. If your DSO is higher than the industry average, it may be a sign that you need to improve your collections process or adjust your credit policies.
Overall, calculating DSO is an important tool for any business looking to manage its cash flow and improve its financial performance. By understanding how to calculate DSO in JD Edwards Enterprise One, you can gain valuable insights into your business and make informed decisions about your credit policies and collections process.
How Do You Calculate Days Sales Outstanding in JD Edwards Enterprise One
JD Edwards Enterprise One itself isn’t naturally geared towards letting you calculate complex metrics like Days Sales Outstanding. As an alternative, teams typically use products like Arithmix to import data from JD Edwards Enterprise One 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 JD Edwards Enterprise One, combine it with data from other systems, and create calculations like 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 Days Sales Outstanding in Arithmix
Calculating metrics like Days Sales Outstanding is simple in Arithmix. Once you've created your free account, you’ll be able to import your JD Edwards Enterprise One data, and use it to create natural language formulas for metrics like Days Sales Outstanding.
Arithmix is designed to give you the power to build any calculations you want on top of your JD Edwards Enterprise One 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.Use Arithmix free