DSO calculator
DSO calculator: your days sales outstanding, and what moves it.
Enter your receivables and revenue and the DSO calculation runs as you type: the days sales outstanding formula worked with your own numbers, your industry's typical range, the cash tied up, and what each lever could be worth in days and dollars.
The calculator
Your days sales outstanding, as you type.
Within the typical 35–50 days for wholesale distribution
DSO = (Accounts receivable ÷ Revenue) × Days in the period
= ($4,820,000 ÷ $9,300,000) × 90 = 46.6 days
- Cash tied up in receivables
- $4.82M
- One day of DSO is worth
- $103k
- Tied up beyond 30-day terms
- $1.72M
Industry ranges are general figures for B2B companies on common terms, for context only. Your terms, mix and season move them.
What if
Move each lever and watch your DSO answer.
Each lever works only on the days beyond your terms, one after another, so no day is counted twice. Every assumption is yours to change.
−5.0 days · $517k
−2.9 days · $301k
−0.4 days · $43k
−0.9 days · $97k
- Within terms
- Still beyond terms
- Taken off by the levers
- Days back
- 9.3
- Cash released, once
- $958k
AssumptionsAdjust to match your receivables
A projection from your inputs
What you can expect when AI runs your receivables.
On your numbers, the four levers together could take DSO from 46.6 to 37.4 days for the quarter: about $958k back in the bank once, and every day after that collected 9.3 days sooner.
- 01Follow-up timed to each customer
Atlas reaches each contact when they usually open, reply or answer, on the channel they prefer, in a tone set from their history, inside contact hours and only with consent.
−5.0 days $517kPayment reminders - 02More invoices paid on time
Every open balance is followed up from before its due date, one sequence per account, moving to Collections at 15 days past due without anyone handing it over.
−2.9 days $301kCollections - 03Disputes resolved faster
A dispute is acknowledged the same day, the order, invoice, proof of delivery and email history are read, and the reply goes out with the evidence attached.
−0.4 days $43kDispute management - 04More promises kept
Each promise is confirmed in writing, reminded the day before, and a missed date gets a retry link the same morning, with every other channel paused until then.
−0.9 days $97kPromise to pay
This is a projection from the numbers and assumptions on this page, not a client result or a promise. It works best when it starts from your own aging and payment history, which is where Atlas starts.
How to calculate DSO
The DSO calculation, in three steps.
How to calculate days sales outstanding by hand, the same way the calculator does it. Use one period for both numbers and keep it the same month to month, so the trend means something.
- Find accounts receivable for the period
Use the receivables balance at the end of the period, or the average of the opening and closing balances if it swings.
- Find revenue for the same period
Use credit sales only. Cash sales never sit in receivables, so including them makes DSO look better than it is.
- Divide, then multiply by the days
DSO = accounts receivable ÷ revenue × days in the period: 30 for a month, 90 for a quarter, 365 for a year.
How to reduce DSO
Six levers, and the work behind each one.
DSO falls when the days beyond your terms fall. Each lever below is a function Atlas runs on its own, on the records in your ERP.
- Follow up before the due date, at the right time
Remind each contact before an invoice is due, when they usually answer and on the channel they prefer, so it is paid in the cycle it was due.
Payment reminders → - Work every overdue balance on one sequence
Escalate on a schedule, per account rather than per invoice, so no balance waits for someone to notice it.
Collections → - Turn promises into kept promises
Confirm each promise in writing, remind the day before, and retry the same morning if a payment misses.
Promise to pay → - Resolve disputes the day they arrive
Gather the order, invoice, proof of delivery and email history before anyone asks, and reply with the evidence.
Dispute management → - Apply cash the day it lands
A payment matched the same day is a balance nobody chases, and a customer who never gets the wrong reminder.
Cash application → - Set terms from payment history
Give credit where customers pay and tighten it where ratings fall, before the balance grows.
AI Credit Rating →
Personalized follow-up
Reached when they answer, on the channel they use.
Follow-up brings DSO down fastest when it lands. Atlas learns when each contact opens email, replies to a text or picks up a call, and sends each touch then, in a tone set from that customer’s history, inside 8am to 9pm in their time zone, and only on channels with consent on file.
The disputes lever
A disputed price, answered with the customer's own email.
A disputed invoice stops paying until someone proves the price. Atlas reads the order, the invoice and the email history, finds where the customer confirmed it, and replies with the evidence attached, then closes and logs the dispute. Days come off every disputed invoice, with no one touching it.
FAQ
DSO, defined, and tracked end to end.
Brief definitions first, then how Atlas evaluates and tracks DSO from your ERP.
What is days sales outstanding (DSO)?
Days sales outstanding is the average number of days it takes to collect payment after a sale on credit. It is also called days sales in accounts receivable, AR days or days sales uncollected. A lower DSO means cash arrives sooner after you invoice.
What is the DSO formula?
DSO = (accounts receivable ÷ revenue for the period) × days in the period. The days sales outstanding formula uses credit sales and the receivables balance for the same period. The accounts receivable days formula and the days sales uncollected formula are the same calculation under other names.
How do you calculate DSO?
Take accounts receivable at the end of the period, divide it by revenue for that period, and multiply by the days in the period. For example, $4,820,000 ÷ $9,300,000 × 90 days = 46.6 days. The DSO calculation works for a month, a quarter or a year as long as both numbers cover the same period, and the calculator on this page does the AR days calculation as you type.
What is a good DSO?
A good DSO sits close to your payment terms. On net 30, a DSO in the low 30s means most customers pay on time; one well above your terms means cash is waiting on late payers, disputes or broken promises. Typical ranges differ by industry, which is why the calculator shows yours in context. Watch the trend more than any single month.
What is the difference between DSO and best possible DSO?
Best possible DSO counts only receivables that are not yet due, so it reflects your terms. The gap between the two, average days delinquent, is the part collections can change. The calculator treats your terms as best possible DSO and applies every lever only to that gap.
How does Atlas calculate DSO from our ERP?
Atlas reads customers, invoices, payments and credit memos from SAP S/4HANA, Oracle NetSuite or Microsoft Dynamics 365, keeps each record verbatim, and maps it into one model. Balances are always computed from payments, credit memos and adjustments, never typed in, so the receivables in your DSO are the same figures your ledger holds. DSO is open receivables divided by the invoices issued in the trailing 90 days, times 90, in each currency on its own.
How does Atlas track DSO over time?
Atlas computes DSO from the ledger each time you open Cash Position, with its weekly trend over the last 12 weeks, so you see the direction rather than a month-end snapshot. Beside it: days to pay weighted by the amount paid, open receivables by aging bucket with the invoices behind each, cash collected by week, and a weekly cash projection built from your own collection history. Every figure opens a short trace of how it was calculated.
How does Atlas reduce DSO end to end?
Agents work every open balance on their own: reminders timed to when each contact answers, collections from 15 days past due, promises confirmed and reminded, disputes answered with the evidence, and cash applied the same day so nobody is chased for a paid invoice. Credits above your limit and every Charge-off & Legal step wait for a person.
Is the projection on this page a promise?
No. It is arithmetic on the numbers and assumptions you enter, with each lever applied only to the days beyond your terms. It is not a client result. Once Atlas is connected to your ERP, Cash Position shows your actual DSO and its trend from your own ledger.
Track your DSO with Ferrata Labs.
Thirty minutes on your own aging report. You leave with a view of how Atlas would work it, and an honest answer if the sequencing is wrong and you should fix something else first.
Your credit policy, terms, tone and escalation rules are your advantage, and they stay yours. Atlas is configured to the way you run receivables. You are not handing over a playbook or fitting into a template.