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 3-month 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
              $12,327,157 + ($47,881,064/3) - $7,846,547
 
Days Sales Outstanding (DSO)
DSO = Last three month ending total receivable balance     x 30
                            Credit Sales for Quarter

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     x 30
                            Credit Sales for Quarter
 
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                = 1.1%

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

Average Days Delinquent (ADD)
Days Sales Outstanding (DSO) - Best Possible DSO
 
Percent Current

Best Possible DSO

Days Sales Outstanding (DSO)