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Days Sales Outstandingnoun · abbr.

The average number of days it takes to collect payment after a sale.

DSO measures collection speed. Rising DSO means cash is arriving later, whether from weaker credit control, disputed invoices or customers under strain.

Compare it with your stated payment terms. If terms are 30 days and DSO is 62, the problem is enforcement rather than the terms themselves.

How it is calculated

DSO = (Accounts receivable ÷ Credit sales) × Days in period

Use credit sales only — cash sales never sit in receivables.

Also called

  • debtor days
  • collection period

See it in AWRA OpsHub

Payments & Collections

Days Sales Outstanding is not just a definition here

Accounting runs on this vocabulary every day in AWRA OpsHub — 51 of our 257 glossary terms describe things the platform actually does.