Hi,
DPO is the average number of days a company takes to pay its suppliers.
Here is the logic I found in the process cockpit. Why do we need to multiply the "BSEG"."WRBTR field here as we need only the days of difference ?
SUM(
CASE
WHEN ISNULL("BSEG"."AUGDT")=1
THEN 0.0
ELSE DATEDIFF(dd, ROUND_DAY("BKPF"."BUDAT"), ROUND_DAY("BSEG"."AUGDT")) * "BSEG"."WRBTR"
END
)
/
SUM(
CASE
WHEN ISNULL("BSEG"."AUGDT")=1
THEN 0.0
ELSE "BSEG"."WRBTR"
END
)
AFAIK BESEG.WRBTR has the amount of the order
So the ratio is a monetaty one: days*value / total value....
it seems.
hth
AFAIK BESEG.WRBTR has the amount of the order
So the ratio is a monetaty one: days*value / total value....
it seems.
hth
Thanks for the reply Guillermo!
My question is , just the DATEDIFF(dd, ROUND_DAY("BKPF"."BUDAT"), ROUND_DAY("BSEG"."AUGDT") is enought, right? Why do we need to multiply with value and then divide by the value again?
Thanks in advance!
Thanks for the reply Guillermo!
My question is , just the DATEDIFF(dd, ROUND_DAY("BKPF"."BUDAT"), ROUND_DAY("BSEG"."AUGDT") is enought, right? Why do we need to multiply with value and then divide by the value again?
Thanks in advance!
Well, I am a financials guy, but, AFIAK, DPO is not the average number of days, it is a financial ratio. And the DPO formula is AccountsPayable X Number of days / Cost of Goods Sold
For example: https://www.investopedia.com/terms/d/dpo.asp#toc-formula-for-days-payable-outstanding-dpo
So you need to inlcude the monetary value of the transactions. Said that, I am not sure that SUM("BSEG"."WRBTR") it is the Cost of Goods Sold
HTH
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