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QUARTERLY NATIONAL SUMMARY Definitions

QUARTERLY DSO DEFINITIONS

Beginning Receivables
Receivables balance at beginning of 3-month period being reported. Consider all domestic open invoices and notes
receivable, deferred billings or datings, past-due billings, credits, unapplied cash, suspense accounts, charge backs,
invoice deductions, bankruptcies, claims, disputes, litigation and accounts placed for collections. (If items such as
bankruptcies and claims have already been written off to bad debt, do not add them back into the AR for this data).
Companies with leasing arrangements should report only the portion of those leases that have been billed.
Credit Sales for Quarter
Total invoiced receivable for the 3-month period reported. Include freight, taxes, and containers.
Ending Total Receivables Month 1
Receivables balance at end of first month of the 3-month period being reported.
Ending Total Receivables Month 2
Receivables balance at end of second month of the 3-month period being reported.
Ending Total Receivables Month 3
Receivables balance at end of third and last month of the 3-month period being reported.
Ending Current Receivables Month 1
Portion of domestic open accounts and notes not yet due as of end of first month of the 3-month period according
to terms, include datings and deferred items.
Ending Current Receivables Month 2
Portion of domestic open accounts and notes not yet due as of end of second month of the 3-month period
according to terms, include datings and deferred items.
Ending Current Receivables Month 3
Portion of domestic open accounts and notes not yet due as of end of third and last month of the 3-month period
according to terms, include datings and deferred items.
Receivables Over 91 Days Month 1
Trade receivables 90 days or more past due (Aged on actual due date) at end of first month of the 3-month period
being reported.
Receivables Over 91 Days Month 2
Trade receivables 90 days or more past due (Aged on actual due date) at end of second month of the 3-month
period being reported.
Receivables Over 91 Days Month 3
Trade receivables 90 days or more past due (Aged on actual due date) at end of third and last month of the 3month period being reported.
Collection Effectiveness Index (CEI)
Use beginning quarterly A/R and end of quarter A/R
CEI = beginning total receivables + (quarterly credit sales/3) - ending total receivables
x 100
beginning total receivables + (quarterly credit sales/3) - ending current receivables
Example: $12,327,157 + ($47,881,064/3) - $13,663,598 x 100 = 71.54
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QUARTERLY NATIONAL SUMMARY Definitions

$12,327,157 + ($47,881,064/3) - $7,846,547

Days Sales Outstanding (DSO)
DSO = Last three month ending total receivable balance
Credit Sales for Quarter

x 30

Example: $16,935,357 + $17,936,658 + $13,663,598 x 30 = 30.41

$47,881,064
Best Possible DSO
BPDSO = Last three month ending current receivable balance
Credit Sales for Quarter

x 30

Example: $8,398,365 + $7,698,687 + $7,846,547 x 30 = 15.00

$47,881,064
Percent of Trade Receivables over 91 Days Past Due
Percent over 91 days past due = Average Receivables over 91 days
Average Ending Total Receivables
Example:

$171,353 + $168,366 + $190,147

$16,935,357 + $17,936,658 + $13,663,598

= 1.1%

Average Days Delinquent (ADD)

Days Sales Outstanding (DSO) - Best Possible DSO
Percent Current
Best Possible DSO
Days Sales Outstanding (DSO)

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