Hi Prashant,
Calculation of DSO key figure:
o The current balance or the average balance and sales figures are are
translated per company code into the currency of the control area.
The sales arising for all periods in the last n months are used
(these sales can belong to two fiscal years, however, there can be
more than 2 fiscal years). If an evaluation takes place on 2/15/2006
and the fiscal year variant corresponds to the calendar year, the
day sales are calculated as follows (depending on the procedure
parameters for DSO calculation):
o If you require the current balance for n=3, you calculate sales
between 01/11/2005 and 02/15/2006 and divide this figure by the
number of days that have elapsed (in this case 107).
o If however you require the average balance for n=3, only the sales
made between 01/11/2005 and 02/01/2006 are calculated and divided by
the number of days that have elapsed (in this case 92).
o You then have the average sales per day per company code.
o The day sales outstanding figure is obtained by dividing the total
of all the company code balances by the total of all company code
day sales.
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