The contra-asset reserve estimating the portion of receivables that will not be collected. Under the current expected credit loss model, the estimate must reflect forward-looking information rather than historical loss experience alone, which raises the evidentiary bar at audit.

The classification of outstanding receivables by days past due — typically current, 1–30, 31–60, 61–90, and 90+. Aging drives collection prioritization, reserve calculation, and the disclosure of concentration risk, though it is distorted by unapplied cash and open deductions.

The share of receipts applied automatically without human intervention. Rule-based systems typically achieve 60–80%; AI-driven cash application platforms report 90%+ by interpreting partial payments, naming variations, and unstructured remittance.

The average number of days invoices are paid beyond their due date, computed as actual DSO minus best possible DSO. ADD is the cleanest single measure of collections effectiveness because it strips out the influence of granted terms.

Receivables judged uncollectible and charged against earnings. Bad debt as a percentage of revenue below 0.5% is generally regarded as strong; 0.5–1.5% is typical. The metric is lagging by construction, which is why forward credit monitoring matters more than the ratio itself.

Current receivables divided by credit sales, multiplied by days in period — the DSO that would obtain if every customer paid exactly on terms. The gap between actual and best possible DSO isolates collection performance from the effect of the terms themselves.