AP metrics

March 30, 2021
March 30, 2021


Q. 1. How do you calculate DPO in the AP process? 2. How do you determine what number to use when considering the invoice processing cycle? Is it all the outstanding documents which are already overdue? All the documents which are not yet due? Or, all the documents which were processed and ready for payment? 3. Also what do you mean by cost of goods sold? A. (Answered by IOFM's Executive Editor Jess Scheer) Days Payable Outstanding = (Average Accounts Payable / Cost of Goods Sold) x Number of…

  Become A Member

Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!

Join Today

Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know. 
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.

Subscribe to our Monthly Insider

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500