DSO calculation: How is it done in SAP?

[Former Member]

Hello Folks,

Points available. I am trying to figure out how the system calculates DSO. When I enter a customer in FD33, I get the following:

Credit exposure 329.90

Cred.lim.used...999.99 %

With cash disc. 0.00

W/o cash disc...0.00

DSO............96

Clearing amount 0.00

<b>This customer was invoiced on 8/2/07.</b>

<b>Does anyone know how the system is currently calculating DSO to arrive at a value of 96?</b>

[Former Member · Accepted solution]

Calculation:

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 2/15/1996 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):

If you require the current balance for n=3, you calculate sales between 11.1.1995 and 02.15.1996 and divide this figure by the number of days that have elapsed (in this case 107).

If however you require the average balance for n=3, only the sales made between 11.1.1995 and 02.01.1996 are calculated and divided by the number of days that have elapsed (in this case 92).

You then have the average sales per day per company code.

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

[Former Member · Accepted solution]

Hi Sivakumar,

Thanks for your reply. Yes, I was able to see the same info you posted using F1. <b>However, I am trying to find out how the system arrived at the value of 96 for its DSO?</b> I have read on this forum that DSO is calculated using some formula. <b>Do you happen to know what that formula is?</b>

Because I tried using the formula SAP gave:

I took $329.90 and divided by the number of days since it has been invoiced (64)

329.90/64=5.15

This does not make sense. <b>Am I missing something?</b>

Message was edited by:

United 99

[Former Member]

the program is RFDRRE05

the help on the method is as follows:

This field is used to define the type of calculation.

Calculation type 1:

Average balance/day's sales

Calculation type 2:

Current balance/day's sales

[Former Member]

Hi Mark,

Thanks again for your many responses. I really appreciate it. After making my selections for RFDRRE05, do I then Save it? What do I do next; do I go to F.30? In the past, when I went to F.30, the system used to give me the following message:

<b>"No evaluations exist. See long text."</b>

<b>Was I getting this message because I did not configure RFDRRE05?</b>

[Former Member]

OK

Once you have done that, the next step is F.29

This is a program where you schedule where and when evaluations will run.

I recommend it is run daily, however some people want this to be weekly or monthly. make sure you have the right selection variable in the processing program.

[Former Member]

Mark,

<b>Are the following steps in the the proper order?</b>

1)SE38 , Enter RFDRRE05 and save the variant.

2)F.29: Define Background Job

3)F.30: Display evaluations

<b>Am I missing anything?</b>

[Former Member]

The first step is OBDF, making sure you configure the evaluations correctly.

By this I mean you need to make sure the evaluation is selected the create evaluation tick box is selected and the variant you created in RFDRRE05 is there.

Then you need to do the rest.

Once you have scheduled your job, check on in it via SM37, and once it is completed go to F.30 and it would have updated.

Hope this helps.

[Former Member]

Hello Mark,

I went to OBDF like you said and used 'Customer standard evaluations'. I choose evaluation type 05 (DSO Analysis). I then copied Evaluation E (DSO analysis by credit control area) becuase I did not want to modify the existing evaluation.

I replaced the standard variant with my own variant. I then executed F.29. The status says 'Finished'.

I then went to F.30, but I am still getting the message <b>"<u>No evaluations exist. See long text"</b></u>

<u>Should I only use the existing version or create a new version?</u>

Thanks.

Message was edited by:

United 99

[Former Member]

Ok,

Try this way.

schedule the job through T.code : SM36

click on steps and in Abap program write RFDRRGEN , choose standrd sap variant SAP&VARI save it and schedule it immidiately,

realease the job from sm37, and it when its finished you should see the evaluations.

Evaluations are being driven through program RFDRRGEN.

assign point is helpful.

[Former Member]

The comments made by Shefford are correct in relation to the scheduling of the jobs.

However you should also look at the program RFDRRSEL, and make sure you have defined your variants for the correct Company Code and the open items at value date is a valid date, this should be today and a selection variable.

The other thing to do is to check the job log in SM37 which at the end of the log will detail all of the evaluations that have been updated.

It could be there is no open item date in RFDRRSEL and so that is why you are still getting the problems.

Hope this is it finally for you.

Award points if this is useful.

[Former Member]

Did my last message help, did you get the evalution to update?

Please let me know and if all OK can you close the thread.

thanks

[Former Member]

Hi United.

OK the DSO is set up via the evalution process.

This can be seen via F.30

You need to make sure you run this periodically otherwise the data becomes obsolete.

In the config for evalutions there are 6 types of evalutions, and the DSO is the 5th one.

In the config will be the program that it calls.

Refer to this program and the information from it. I cant access a SAP system at the moment so I cant add too much.

From memory you need to specify a value for months, which is say 3.

Then you either look at the average sales for the 3 months and compare that to the amount of outstanding debt or the total of the 3 months.

[Former Member]

<b>I dug out the following from this forum: (THis is not mine)</b>

Hi,

In order to get DSO analysis for Customers, you can set up evaluations using Transaction code F.29 (Create evaluations).

DSO - Days Sales Outstanding indicates how many days sales of a particular Customer is outstanding. For example if the annual sales for a Customer is $ 365,000 and the outstanding receivables are $100,000, no. of days receivables are 100. ($100,000/$365,000*365).

Higher the number of days sales outstanding, higher the amount blocked in receivables.

In addition, you can also view DSO from Credit Management reports using transaction code F.29.

.<b>Let me also try to understand how it works and I will also share my knowledge on this.</b>