DSO bridge (Excel)
The same split as the online calculator, in a file you can keep and run every month.
What it does
DSO is receivables divided by sales, and either one can move it. The workbook splits a movement in DSO into a sales effect and a receivables effect. It does the split both ways, sales first and receivables first, and averages the two, so the effects add up to the whole movement and the order doesn’t change the answer.
It says where the movement sits in the formula. It doesn’t say why it happened or who caused it. That still needs someone to look.
Two sheets
| Sheet | What it is for |
|---|---|
| Two periods | One comparison, such as forecast against actual, with a bridge chart from one DSO to the other |
| Monthly | Up to 36 months, each split against the month before, with a chart of both effects and the movement |
How to use it
- Fill in the yellow cells: credit sales and month-end receivables, in any currency or unit, as long as both use the same one.
- Set the days in the period: 30 for a month of sales, 90 for a quarter, 365 for a year. Use the convention your DSO already uses.
- Read the sales and receivables effects, and the charts. Everything else recalculates on its own.
Worth knowing before you trust it
- Use the same DSO definition in both periods. Otherwise the split explains a change of convention.
- The two effects often pull in opposite directions. Lower sales also means fewer invoices in receivables, so a sales dip shows up twice. Read them together.
- A receivables effect is not a collections effect. Terms, customer mix, disputes, credit notes and timing at month end all land there too.
The reasoning behind all of this is in Did sales or receivables move DSO?
Built for Microsoft Excel. No macros and no external links. The file opens empty, ready for your own numbers. Free to use and adapt.