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 Detection Method: Vendor DSO Shorter than Company Average DSO

 

You can use this method to detect cases in which the days sales outstanding (DSO) – here, the amount of time to payment of a vendor – is much less than the company average DSO. A low DSO suggests that a vendor may be getting favorable treatment in payments.

Logic

To check for a low DSO for a particular vendor, the method first calculates the average payment term from the company code with the following formula:

SQL Code:

SUM ( DAYS_BETWEEN (BKPF.CPUDT, BSEG.AUGDT) * BSEG.DMBTR ) / SUM ( BSEG.DMBTR )

The average time to payment of a vendor is calculated with the same formula, but the SQL query is extended with the vendor number. Both calculations select only data sets from tables BKPF and BSEG that have accounting type (KOART) K, posting keys (BSCHL) 21, 22, 31, or 32 and a valid clearing date (AUGDT).

When the values are calculated, the method checks whether the differences in vendor and company-average DSO exceed the threshold that you have input. If the threshold is exceeded, then an alert is generated for the vendor and company code.

Investigation and Detection Object Types

  • Investigation object type: FRA_VEND (Vendor)

  • Detection object type: FRA_VEND (Vendor Master Data)

ERP Tables Used

  • LFA1: Vendor Master (General Section)

  • LFB1: Vendor Master (Company Code)

  • BSEG: Accounting Document Segment

  • BKPF: Accounting Document Header

  • T001: Company Codes

SAP HANA Procedures for Detection Methods

Procedure Category

Procedure Name

Procedure Type

Package

Selection

PR_VENDOR_TOO_SHORT_DSO_SELE

SQLScript Procedure

sap.hana-app.fra.suite.pur.dt.vendor.masterdata.se

Execution

PR_VENDOR_TOO_SHORT_DSO_EXEC

SQLScript Procedure

sap.hana-app.fra.suite.pur.dt.vendor.masterdata.ex

Additional Information

PR_VENDOR_TOO_SHORT_DSO_ADDINF

SQLScript Procedure

sap.hana-app.fra.suite.pur.dt.vendor.masterdata.ai
Detection Method Parameters

DAYS_TO_DSO: Threshold for the minimum difference between a vendor DSO and the company average DSO. Differences in DSO that do not exceed this threshold are ignored.

Alert Messages

  • Message ID FRA_INTERNAL_AUDIT, message number 103, Early payment; average payment period in company code &1 is &2 days more