Administrator's Guide

DSO - Days Sales Outstanding

Calculates the number of days sales in the current period debtors using the exhaustion method.

Return Value

This routine calculates a single value representing the amount of days sales contained within the current period trade debtors figure. The DSO sub-routine included makes these assumptions:

Both Debtors and Sales are positive figures.
The parameters supplied are fully defined points of view (for example, Account/C1/C2/C3/C4/ICP) because the routine uses the HS.GETCELL function.
The routine calculates the days going back as far as possible in time. However, it will stop if the periodic sales value for any period is a negative or zero value.

Syntax

CALL DSO (strDSO,strDEBTOR,strSALES,strDIP)

Table 12-9 Syntax of DSO Function

Parameter	Valid Values
strDSO	Fully defined account with custom and intercompany dimensions. This account is the destination for the calculation.
strDEBTOR	Fully defined account with custom and intercompany dimensions. This account is the source for the current period trade debtors.
strSALES	Fully defined account with custom and intercompany dimensions. This account is the source for the sales. Specifically exclude references to frequency.
strDIP	Fully defined account with custom and intercompany dimensions. This account is the source for the number of days in the period. This is assumed to be in the [None] entity.

Detailed Description

The routine takes the values in the Debtors account (parameter 2) and Sales account (parameter 3) for the current period and compares them. If either are zero or negative, the calculation stops. For each successive period where the debtors value exceeds that of the cumulative sales (working backwards from the current period), the routine adds the number of days for that period as specified in the days in the Period account (parameter 4) to a running total.

When all the Debtors values have been exhausted in this way, the final period’s days are calculated as a proportion of the unexpired debtors against the periodic sales value.

Finally, the routine posts the running total to the destination account (parameter 1).

Example

The example calculates the total days outstanding for the months shown.

Table 12-10 Example of DSO Function

Month	Debtors	Period Sales	Days in Month	Formula for DSO	Total DSO
September	12,000	2,500	30	100%	30
August	N/A	1,750	31	100%	31
July	N/A	2,250	31	100%	31
June	N/A	2,500	30	100%	30
May	N/A	2,000	31	100%	31
April	N/A	2,250	30	2000/2250	26.7
Total	N/A	N/A	N/A	N/A	179.7

Sample Script

' Use within the calculation section:
' 1. Standard use

CALL DSO("A#DSO","A#TradeDebtors.C1#AllAges.C2#[None].I#[ICP Top","A#TotalSales.C1#[None].C2#AllProducts.I#[ICP Top]", "A#DIP")

' 2. Use with a common custom dimension

set vPRODUCT = ARRAY("C2#PRODUCT1","C2#PRODUCT2", ….. ,"C2#PRODUCTn")

FOR EACH iITEM IN vPRODUCT

CALL DSO("" A#DSO.""&iITEM,"" A#TradeDebtors.C1#AllAges.I#[ICP Top].""&iITEM,"" A#TotalSales.C1#[None].I#[ICP Top]."" &iITEM,"" A#DIP"")

NEXT

' Actual script of Sub-routine

SUB DSO(strDSO,strDEBTOR,strSALES,strDIP)

DIM vTEST
DIM vDSO
DIM vCOUNT
DIM vXS_1
DIM vXS

HS.CLEAR(strDSO)

vTEST = HS.GETCELL(strDEBTOR) * HS.GETCELL(strSALES&"".W#Periodic"") * HS.GETCELL(strDIP&"".E#[None]"")

' checks if any of the parameters are zero (uses principle of X * 0 = 0)

IF vTEST = 0 THEN

EXIT SUB

ELSE

vDSO = 0
vCOUNT = 0
vXS_1 = HS.GETCELL(strDEBTOR)
vXS = vXS_1 - HS.GETCELL(strSALES&"".W#Periodic"")

' ensures that periodic sales are not negative or zero

WHILE vXS > 0 AND vXS_1 > vXS

vDSO = vDSO + HS.GETCELL(strDIP&"".E#[None].P#CUR-"" &vCOUNT)
vCOUNT = vCOUNT + 1
vXS_1 = vXS
vXS = vXS - HS.GETCELL(strSALES&"".W#Periodic.P#CUR-"" &vCOUNT)

WEND

IF vXS = vXS_1 THEN

vCOUNT = vCOUNT - 1

END IF

vDSO = vDSO + (vXS_1 / HS.GETCELL(strSALES&"".W#Periodic.P#CUR-"" &vCOUNT)*HS.GETCELL(strDIP&"".E#[None].P#CUR-"" &vCOUNT))

IF vDSO < 0 THEN

vDSO = 0

END IF

END IF

HS.EXP strDSO &"="& vDSO

END SUB