Latest revision as of 21:16, 9 April 2017
The average number of days the company takes to pay its invoices.
Calculation
Days Payables Outstanding |
= |
Accounts Payable |
× 365 days |
Cost of Goods Sold |
|
where:
Unit of measure = Days (Calendar Days)
Community Importance
Rating:
Process(es)
ID | Name | Level | x | S006 | Negotiate | 3 | S006 |
S1 | Source-to-Replenish | 2 | S1 |
S2 | Source-to-Order | 2 | S2 |
S3 | Source-to-Engineering-Order | 2 | S3 |
Term(s)
ID | Name | Clear | x | AP | Accounts Payable | | AP |
Days Payables Outstanding Cash Conversion Cycle 51300 2 {{{keywords}}} {{{description}}}