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

SAP Term: Days Payable Outstanding - Indirect Method - Detailed Analysis

• 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. You can use the predefined analysis steps to view your DPO by time, company code, supplier, and country of supplier.

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• 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 (AP) balance and the total cost of goods purchased in a given period to calculate the average number of days it takes to pay suppliers. The detailed analysis component of this calculation provides a more granular view of the DPO by breaking down the calculation into individual supplier payments. 
  
  How to use it: 
  The FI-FIO-AP Fiori UI for Accounts Payable provides an easy-to-use interface for calculating DPO using the indirect method and detailed analysis. To use this tool, first enter the total cost of goods purchased in a given period and the Accounts Payable balance. Then, select “Detailed Analysis” to break down the calculation into individual supplier payments. The tool will then provide an average number of days it takes to pay each supplier. 
  
  Tips & Tricks: 
  When using the FI-FIO-AP Fiori UI for Accounts Payable, it is important to ensure that all supplier payments are included in the calculation. This will ensure that the DPO calculation is accurate and reflects an accurate picture of how quickly a company pays its suppliers. 
  
  Related Information: 
  The FI-FIO-AP Fiori UI for Accounts Payable is just one tool available for calculating Days Payable Outstanding. Other tools include manual calculations, Excel spreadsheets, and third-party software solutions. It is important to choose the right tool for your specific needs in order to get an accurate picture of your company’s DPO.