How to Track Days Sales Outstanding (DSO) in NetSuite

📌 Days Sales Outstanding (DSO) is a critical metric for finance teams looking to optimize working capital and forecast cash flow accurately. Oracle NetSuite offers multiple tools and reports to help businesses monitor DSO in real time, identify trends, and improve collections efficiency. Here’s how to get started.

How to Monitor and Improve DSO Using NetSuite

By combining NetSuite’s built-in reporting with dashboard widgets, alerts, and even predictive analytics, finance teams can stay on top of overdue payments and reduce DSO across customer segments.

1. Access the A/R Aging Detail Report

• Go to  Reports > Customers/Receivables > A/R Aging > A/R Aging Detail
  
  
• What it shows: Outstanding invoices grouped by aging buckets (e.g., 0–30, 31–60 days), which helps you track how long receivables have been open.

2. Use A/R Payment History by Payment

• Go to Reports > Customers/Receivables > A/R Payment History by Payment
  
  
• What it shows: Details on applied and unapplied customer payments, helping you see payment trends and lags.

3. Create a Saved Search for Custom DSO Tracking

• Go to Lists > Saved Searches > All Saved Searches > New > Transaction
  
  
• Setup Tips:
  
  1. Criteria: Filter for Type = Invoice and Status = Open or Paid.
     
     
  2. Columns: Add fields like Customer, Invoice Date, Due Date, Days Overdue, Amount Remaining, and Date Paid.

4. Add Custom DSO Dashboards

• Go to Home > Dashboard > Personalize Dashboard > Add Content
  
  
• Add:
  
  1. Saved Search results as Report Snapshots.
     
     
  2. KPI Meters showing total overdue invoices, average DSO, collector performance, etc.

5. Set Up Alerts for Overdue Invoices

• Go to Customization > Workflow > Workflows > New
  
  
• Create Workflow:
  
  1. Trigger: On Create / On Update for Invoice records.
     
     
  2. Condition: Due Date < Today
     
     
  3. Action: Send an email notification to the collector or finance admin.

Pro tip: While NetSuite provides the foundation, plugging in a solution like Growfin adds superpowers to your DSO tracking. Growfin integrates with NetSuite to surface real-time insights, flag at-risk invoices, and help collectors take timely action, without manual digging.

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