How this calculator works
An ageing report groups what customers owe by how long it has been due. The older a bucket, the less likely it is to be collected. This turns your buckets into DSO, the share overdue and a sensible provision for bad debts.
Edit the provision percentages to match your experience or your auditor’s policy.
Formula
Worked example
With ₹49.3 lakh owed and ₹75 lakh of credit sales in the last 90 days, DSO is about 59 days. A quarter of the book is over 60 days, and the default provision rates suggest holding about ₹5.3 lakh against bad debts.
Things to watch
- Call the 31–60 day bucket every week; collection odds fall sharply after 90 days.
- Use 90 days of sales for DSO so a single big month does not distort it.
- Under Ind AS 109, expected credit loss rates should come from your own history.
Questions
What is a good DSO?
Close to your credit terms. If you give 30 days and DSO is 60, half your customers pay late.
How do I set provision percentages?
From your write-off history by age bucket. The defaults are a common starting point, not a rule.
Is this the same as expected credit loss?
It is a simplified provision matrix, which Ind AS 109 allows for trade receivables.
Can I paste numbers from Tally?
Yes. Copy each bucket total from the ageing report into the grid.
For planning and education only, not tax, legal or investment advice. Last reviewed 2026-10-31.