Days Sales Outstanding (DSO) Calculation

[Former Member]

Can anyone explain or provide a document that explains how the DSO number is calculated in Standard SAP? Or any config docs regarding how to set up something different than the Standard? And, in our DSO, sometimes there is the number 9999 . . . Any ideas why?

Thanks,

Diane

[Former Member · Accepted solution]

Hi Diane,

The DSO figure is an index of the relationship between outstanding receivables and sales achieved over a given period.

In the standard system, this figure is calculated by taking into account current receivables, and a period of 3 months plus the days of the current month.

When displaying the credit management data for a given customer, the basis on which the DSO figure is calculated can be viewed by choosing Extras --> DSO calculation.

In Customizing for Financial Accounting, you can define other parameters by which DSO is calculated. You do so in the activity Define Preliminary Settings for Credit Management.

Regds,

Rupali