DPO Calculator

Use the B2BE Days Payable Outstanding (DPO) calculator to see what happens if your organisation can better manage its DPO days through better invoice management and accounts payable processes and practices and how B2BE can help in this area. * DPO is an efficiency ratio that measures the average number of days a company takes to pay its supplier.

To see how to achieve this

Period

The number of days of the DPO measurement period which can be quarterly, bi-yearly, or year. Purchases should reflect the same time period.

Purchases

Purchases refers to the cost for the materials purchased only. It excludes Cost of Goods Sold (COGS) which are the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses, such as distribution costs and sales force costs.

Payables

The value of Payables (outstanding short-term financial obligations to suppliers for goods and services the company has already received but not yet paid for).

Actual DPO Days

The actual number of days. DPO provides one measure of how long a business holds onto its cash.

Cost of Capital

This is also known as opportunity cost.

Target DPO

The target days payable outstanding (DPO) is the desired target you would like to achieve through improved invoice management and accounts payable processes and initiatives to help with better payable practices.

Enter your target number of Days Payable Outstanding.