I have to agree with Barry; it depends upon what you're trying to measure, as well as what you are trying to show. I just completed a report that tracks DSO and 12-month Rolling Average DSO. I also have to measure and report the number of accounts which are beyond current, and the subset of all accounts more than thirty days past due. ADP and DTP are components we inspect when giving credit references. Each one of these metrics, and others, related to receiveables show different facets of the credit picture.
Barry Rose - 14 years ago
The poll's question was not worded very well, and could have been clearer. Measurement infers purpose, and the question did not explain the purpose. Our reply of days beyond terms is our delinquency measurement (the dollars in our Aging Report buckets). We also measure with YTD DSO, to measure the average number of days it takes to collect our receivables and to track the direction it is taking, so we could have answered more acurately if we knew the purpose of the measurement.
I have to agree with Barry; it depends upon what you're trying to measure, as well as what you are trying to show. I just completed a report that tracks DSO and 12-month Rolling Average DSO. I also have to measure and report the number of accounts which are beyond current, and the subset of all accounts more than thirty days past due. ADP and DTP are components we inspect when giving credit references. Each one of these metrics, and others, related to receiveables show different facets of the credit picture.
The poll's question was not worded very well, and could have been clearer. Measurement infers purpose, and the question did not explain the purpose. Our reply of days beyond terms is our delinquency measurement (the dollars in our Aging Report buckets). We also measure with YTD DSO, to measure the average number of days it takes to collect our receivables and to track the direction it is taking, so we could have answered more acurately if we knew the purpose of the measurement.
No comment.