Days sales outstanding countback Method

[Former Member]

Hi,

We are implementing a DSO calculation based on count back method, I request the forum members to share some ideas on coding part.

Country	Year	Months	number of days	AR	Sales	D	To calculate (DSO net)
US	2013	12	31	2000	500		95
		11	30	2500	400	1500
		10	31		1000	1100
		09	30		700	100
		08	31		1000
		07	31		700
		06	30		1000
		05	31
		04	30
		03	31
		02	28
		01	31
	2012	12

Table 1 : Contents of the cubes are  Country, Year, Months,number of days, AR and Sales.

To calculate D and DSO net.  Logic is as follows

DSO is calculated based on country here later we might do it on comp code  with same count back method.

- If AR > Sales then note down the number of days . In this case 2000 > 500 , number of days for December would be 31.

- Next step is AR - Sales, which is 2000-500 = 1500 (value of 'D').

- If D > Sales (current month -1). which is 1500 > 400 (November)

  then note down the number of days in November, which is 30. Add 30 (November) to 31 (December).

- Repeat until D < Sales (current month -1). which is 100 < 700 for month of September.

Now perform the DSO calculation taking in September values for D, Sales and Number of days 

(D/ Sales) * number of days.  which is 100/700 *30 = 4 days.

Now final step would be Add all the days December + November + October + DSO Calculation for September.

which is 31+30+30+4= 95 days.

Then this process is repeated for month of November. where AR is 2500 and Sales is 400.

Thanks,

Vinay

[Former Member]

Hi,

We are implementing a DSO calculation based on count back method, I request the forum members to share some ideas on coding part.

Country	Year	Months	number of days	AR	Sales	D	To calculate (DSO net)
US	2013	12	31	2000	500		95
		11	30	2500	400	1500
		10	31		1000	1100
		09	30		700	100
		08	31		1000
		07	31		700
		06	30		1000
		05	31
		04	30
		03	31
		02	28
		01	31
	2012	12

Table 1 : Contents of the cubes are  Country, Year, Months,number of days, AR and Sales.

To calculate D and DSO net.  Logic is as follows

DSO is calculated based on country here later we might do it on comp code  with same count back method.

- If AR > Sales then note down the number of days . In this case 2000 > 500 , number of days for December would be 31.

- Next step is AR - Sales, which is 2000-500 = 1500 (value of 'D').

- If D > Sales (current month -1). which is 1500 > 400 (November)

  then note down the number of days in November, which is 30. Add 30 (November) to 31 (December).

- Repeat until D < Sales (current month -1). which is 100 < 700 for month of September.

Now perform the DSO calculation taking in September values for D, Sales and Number of days 

(D/ Sales) * number of days.  which is 100/700 *30 = 4 days.

Now final step would be Add all the days December + November + October + DSO Calculation for September.

which is 31+30+30+4= 95 days.

Then this process is repeated for month of November. where AR is 2500 and Sales is 400.

Thanks,

Vinay

[tom_samata]

I know this is an old post, but check out note:

942684 - Credit management: Activation of DSO calculation for France

It looks like this does the count back method for DSO calculations.