This instruction explains how you create a list of the average time for payment of customer invoices measured in days for each payer. You do this by automatically calculating this value as Days of Sales Open (DSO) for the company/division when running 'Credit Monitoring. Calculate DSO' (RMS410).
DSO values are calculated by period for all payers connected to the company. (For multiple unit companies, the calculation is done per division.) A DSO calculation update list is printed. The list contains the following information: Payer, customer, name, outstanding amount (for the To period), total sales, average sales value, average DSO value (in days), change in sales in percent, change in DSO value in percent, DSO value, and DSO code.
Use the DSO values as an indication of the payer's credit status and payment behavior. Based on this information you decide whether to take action. This could mean contacting the payer and discussing the matter, for example, or adjusting the credit policy for the payer in 'Customer. Open' (CRS610), panels J and K. For further information on how to use DSO values, see Analysis of Customer Payment Situation Using Calculation of Days of Sales Open (DSO).
Since DSO values are represented by value type 30 in 'AR Inquiry Column Template. Open' (ARS066/F), you can use them when reviewing information in 'Accounts Receivable. Display Balances' (ARS225).
The work file for DSO calculation (FAR401) is used in this activity but no permanent changes are made.
Start 'Credit Monitoring. Calculate DSO' (RMS400).
On the E panel, enter the period for which to calculate DSO values.
Enter a report text to be printed on the printed DSO calculation update list. Press Enter to print the list of DSO values.