Dictionary term

Days Sales Outstanding (DSO)

The average number of days a company takes to collect payment after making a credit sale.

The average number of days a company takes to collect payment after making a credit sale.

Why Days Sales Outstanding (DSO) matters

Understanding this term helps teams align sales, operations, finance, and technology around how business customers evaluate, purchase, and receive products or services.

How It Applies to E-Commerce

B2B portals can help shorten collection time through invoice visibility and self-service payment.

How It Applies to ERP Systems

ERP calculates DSO using receivables and credit sales, and supports collections workflows.

How It Applies to CRM Systems

CRM may alert account managers to overdue receivables that affect account relationships.