INTERPRET RESULTS
DSO estimates a balance; a collection profile dates cash
An average receivables-days assumption does not uniquely identify when each invoice is collected. DSO and collection profiles answer different questions, so the same average lag can hide different weekly cash troughs.
| Collection offset | Share | Cash · EURk | Window treatment |
|---|---|---|---|
| W+0 · 2027-03-22 | 50% | 50 | Week 12, inside |
| W+1 · 2027-03-29 | 30% | 30 | Week 13, inside |
| W+2 · 2027-04-05 | 20% | 20 | Carry-out, outside |
On this page
Read the balance equation on its own terms
For a separate steady-state illustration, annual credit revenue is EURk 3,650 and DSO is 30 days. Under the native 365-day convention, receivables = 3,650 × 30 / 365 = EURk 300. This is a modeled reporting-date stock, not an instruction to collect every invoice on day 30.
The approximation depends on the chosen flow, day convention, credit-sales definition and period. Seasonality, growth, overdue balances and invoice dates can break a simple steady-state interpretation. Changing DSO is not the same operation as moving a dated cohort between weeks.
Preserve the part that falls outside the window
The separate cohort illustration uses the 13-week window 2027-01-04 to 2027-04-04. A EURk 100 invoice cohort begins on 2027-03-22. The native 50% / 30% / 20% profile places EURk 50 and 30 inside the window and EURk 20 after it. The source reconciles: 100 = 80 in-window + 20 carry-out.
The 20 is delayed cash, not a bad-debt expense and not a disappearing balance. This case has zero carry-in. A plan with prior invoices must also retain receipts carried into the window; simply applying the profile to current-window revenue would omit them.
Do not infer a unique profile from an average
A one-week average delay could mean 100% next week or 50% now and 50% two weeks later. The average is identical, but early receipts and the cash trough differ. The DSO example and the 50/30/20 cohort above are deliberately separate and are not claimed to be numerically equivalent.
BalanceCheat does not automatically convert DSO into a statistical payment distribution. Choose a supported source and timing rule from evidence, then inspect the weekly cash consequence. If you sample a profile, preserve its total through the supported balancing companion.
Keep Model sources and operational timing distinct
The annual Model owns its revenue and receivables assumptions. The operational 13W plan can apply a collection rule or supported override without silently rewriting those annual inputs. Do not add a manually entered receipt to a linked baseline that already includes the same cohort.
Inspect opening balances, source ownership, timing, overrides and outside-window amounts together. Use DSO for the balance question and the profile for the dated receipt question; use the cash schedule to determine whether the timing matters for funding.
Related decisions and model reference
For adjacent questions: 13-Week Cash Flow Forecast: Build a Weekly Liquidity Plan; Accounts Receivable Model — Forecast AR and Collections; Days Sales Outstanding (DSO) Calculator & AR Forecast; 13-Week Cash Forecast vs Annual Plan and Cash-Flow Statement.
For the exact controls and source behavior, use Business-line collection profiles and 13-Week Cash Flow.
Sources and conventions
Synthetic examples. Model-based results were reconciled with the current BalanceCheat calculations; assumptions, units and boundaries are specified in each example.