Total invoiced receivable for the 12-month period reported. Include freight, taxes, and containers.
Receivables balance at beginning of 12-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.
Receivables balance at end of 12-month period being reported.
Portion of domestic open accounts and notes not yet due as of end of 12-month period according to terms, include datings and deferred items.
DSO - Best Possible DSO.
(Ending Current Receivables * 365) / Annual Credit Sales
CEI (Collection Effectiveness Indicator)
(Beginning Receivables + (Annual Credit Sales/12) - Ending Total Receivables)
_____________________________________________________________________ x 100
(Beginning Receivables + (Annual Credit Sales/12) - Ending Current Receivables)
(Ending Total Receivables * 365) / Annual Credit Sales
Ending Current Receivables / Ending Total Receivables
Annual Credit Sales / Ending Total Receivables