SETUP > PAYABLES > DPO (Days of Vendor Payments Outstanding)
Days of Payables Outstanding (also called Days Payables) is a calculation used by a company to estimate their average time it takes to pay vendors A low number of days indicate that the company pays accounts payables invoices too quickly on the other hand a higher DPO number indicates that the company takes longer to pay its bills, may be a sign of cash crunch or working capital issues.. The DPO analysis provides general information about the number of days on average that it takes to pay vendors.The DSO along with DPO is considered an important tool in measuring liquidity.
DPO Code: Alphanumeric code for the DPO type
No of Days: The average number of days to pay vendors Active: Only one code can be selected as active – this is your default DPO for the budget cycle
Multiplier No of Days divided by 30 days
AP GL Account: Default Accounts payable GL Account – AP balance will be posted to this account
SETUP > PAYABLES > Vendor Maintenance –
This section has been created to load in basic vendor nformation such as Vendor ID, Vendor Name and the Expense account the vendor is assocciated with. This classification is further utilized in generating vendor specific reports as well as in expense forecasting.
Code: Alphanumeric code representing the Vendor ID
Name: Vendor Name
Expense Account: The expense account that the vendor is associated with.