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The daily sales report (DSR) is a record of sales tickets and APC (average per check) maintained on a daily basis. APC is calculated by dividing total sales by the number of customers. In the video tutorial, the presenter, Vijay from Office Mount, demonstrates how to create a DSR template with dropdowns for managing months and years. Changing the month automatically updates the dates within that month. Additionally, the video covers how to limit days in February and April.