What is Days Payable Outstanding - Indirect Method in SAP FI-FIO-AP - Fiori UI for Accounts Payable?

SAP Term: Days Payable Outstanding - Indirect Method

• Component: FI-FIO-AP

• Component Name: Fiori UI for Accounts Payable

• Description: SAP S/4HANA Fiori app used to view your days payable outstanding DPO calculated using the indirect method.

Smart SAP Assistant

• Key Concepts: 
  Days Payable Outstanding (DPO) is a financial metric used to measure the average number of days that a company takes to pay its suppliers. The Indirect Method of calculating DPO uses the Accounts Payable balance and the Cost of Goods Sold (COGS) to calculate the average number of days it takes for a company to pay its suppliers. 
  
  How to use it: 
  The FI-FIO-AP Fiori UI for Accounts Payable is an SAP application that allows users to view and manage their Accounts Payable data. This application can be used to calculate DPO using the Indirect Method by entering the Accounts Payable balance and COGS into the application. The application will then calculate the average number of days it takes for a company to pay its suppliers. 
  
  Tips & Tricks: 
  When calculating DPO using the Indirect Method, it is important to ensure that the Accounts Payable balance and COGS entered into the application are accurate and up-to-date. This will ensure that the DPO calculation is accurate and reliable. 
  
  Related Information: 
  The FI-FIO-AP Fiori UI for Accounts Payable can also be used to view and manage other Accounts Payable data such as invoices, payments, and vendor information. Additionally, there are other methods of calculating DPO such as the Direct Method which uses Accounts Payable turnover instead of COGS.