Accounting · Odoo glossary

Days Sales Outstanding (DSO)

DSO estimates the average collection period for credit sales.

Definition

In general ERP practice

DSO estimates the average collection period for credit sales. A common formula is average trade receivables divided by credit sales for the period, multiplied by the number of days; population and period must be consistent.

In Odoo

Odoo provides Aged Receivable reporting and average debtor days in the Executive Summary. These are relevant to collection performance, but verify the report methodology rather than assuming it matches a chosen average-balance DSO formula.

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