What do the AR dashboard metrics mean?

If you want to quickly understand what's happening with your customer accounts, the dashboard is where all of this information is aggregated and displayed. Here we will explain the terms to you so that you can get the most out of the metrics.

  • Days Sales Outstanding (DSO): the average number of days to collect receivables from sales.


Peakflo calculates your DSO using the following formula:

First, we pull the data for all paid and unpaid invoices from today until the last 365 days. This calculation helps us better estimate the trends for DSO. 

Then, we calculate the total of your invoice value. This will be the sum of: 
a. Paid invoices: (Paid On Date - Issue Date) x Total Amount
b. Unpaid or overdue invoices: (Today - Issue Date) x Total Amount
The result of the total invoice value is what we call the True DSO Invoice Amount

Afterward, we divide True DSO by the total amount of revenue collected. This will then become the DSO number that you see in our dashboard!

  • Doubtful debt: The total invoice amount that is180 days past the due date and likely to turn into bad debt.

  • Outstanding amount: The total unpaid amount of all invoices owed to you 

  • Invoices disputed: A rundown of disputed invoices complete with the debtors and amount so you can resolve disputes quickly.

  • Aging balance: This chart visualizes the total outstanding amount

    • 0-30 days overdue: shows the amount that is overdue less than 30 days;
    • 30-60 days overdue: shows the amount that is overdue between 30-60 days;
    • 60-90 days overdue: shows the amount that is overdue between 60-90 days;
    • >90 days overdue: shows the amount that is overdue more than 90 days;
  • Main Debtors: These are the customers who owe you the most money

If you have any questions about the dashboard or anything in the platform, click on 'Help' and select any of the resources you need.