The Days Payable Outstanding Calculator was created to allow the AP Department to see how adjustments to the number of days that vendor invoices are outstanding prior to payment impact cash flow. Many companies have a policy for payment terms for each vendor. Payment terms might be specific to a vendor contract or a general policy governing when an invoice will be paid based on the date of receipt. Changing the number of days it takes for your company to process a vendor payment will directly impact company cash flow and cash position.
How it works
The Days Payable Outstanding Calculator allows the user to enter payment data based on their company's historical financial records and determine what their current average number of days accounts payable is outstanding. The Input section also allows the user to input "what if" scenarios regarding the increase or decrease of the number of days outstanding to see how the changes will impact their company's cash flow.
What it does
This calculator is a useful tool to provide the user with an AP process measurement of how long it takes to process a vendor invoice for payment and how changes in the metric impacts company cash.
The Days Payable Calculator is brought to you by The Accounts Payable Network.
Note: The calculator pops-up in its own window and you may have to authorize your browser to allow the pop-up to access the calculator if you have pop-up blocking software installed.
