working-capital-review

DSO equals average accounts receivable divided by credit revenue times days in period, DIO uses average inventory over COGS, and DPO uses average AP over purchases or a disclosed cost base. The cash conversion cycle is DSO plus DIO minus DPO, and all ratios must share the same scope, period, and currency.

Prioritize by amount, age, dispute status, customer risk, promise-to-pay evidence, and commercial sensitivity rather than sorting by largest balance alone. Separate items into direct collection, billing disputes, unapplied cash, and credit or legal review before estimating a realistic collection window.

Differences usually come from gross versus net AR, credit revenue versus total revenue, or inconsistent average balance definitions. Align the definitions across both calculations and build a bridge reconciling the two figures.

No. It only produces analysis, scenarios, and recommendations. Contacting customers or vendors, changing credit limits or terms, issuing write-offs, and releasing payments are explicitly out of scope and require separate approved processes.

The skill stops and flags the data as source incomplete, since unreconciled subledgers make ratios and opportunities unreliable. Reconcile manual journal entries, unposted batches, or debit balances first, then proceed with ratio and opportunity analysis.