Direct Calculation Method

The direct calculation of DPO is based on original documents. The period of time between posting date and clearing date of the financial document line item is calculated to provide accurate results.

The formulas for this direct calculation method are as follows:

*The Reference Date for Net Due Payable Calculation is either the Baseline Date for Due Date Calculation (table BSEG field ZFBDT) or the Document Date (table BKPF field BLDAT) if the Baseline Date is not filled.

Indirect Calculation Method

With the indirect calculation method DPO is calculated on an aggregated level. Here the accounts payable balance and expenses are taken into account to derive the measure on the DPO performance.

DPO can be calculated per month or for the entire selected timeframe. The calculation per month is used for those analysis steps that depict a development over time.

The formulas for indirect calculation per month are as follows:

The formulas for indirect calculation overall (for the entire selected timeframe) are as follows: