What is weighted average payment time in SAP SRD-TRL - GLO-Translation?

SAP Term: weighted average payment time

• Component: SRD-TRL

• Component Name: GLO-Translation

• Description: The average number of days a business partner takes to pay each open invoice, calculated by taking the size of each payment into account.

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• Key Concepts: 
  Weighted Average Payment Time (WAPT) is a metric used in SAP SRD-TRL GLO-Translation to measure the average time it takes for a company to pay its suppliers. It is calculated by taking the total amount of money paid to suppliers over a certain period of time and dividing it by the total number of invoices paid during that same period. The resulting figure is then multiplied by the number of days in the period to get the WAPT. 
  
  How to use it: 
  In order to calculate WAPT, you will need to have access to your company’s financial records. You will need to gather all invoices paid during a certain period of time and add up the total amount paid. Then, divide this total amount by the number of invoices paid during that same period. Finally, multiply this figure by the number of days in the period to get your WAPT. 
  
  Tips & Tricks: 
  It is important to note that WAPT is not an exact measure of how quickly your company pays its suppliers. It is only an estimate based on the data you have available. Additionally, it is important to remember that WAPT does not take into account any discounts or incentives that may have been given to suppliers for early payment. 
  
  Related Information: 
  WAPT is just one of many metrics used in SAP SRD-TRL GLO-Translation to measure supplier performance. Other metrics include Days Payable Outstanding (DPO), Payment Accuracy, and Payment Cycle Time (PCT). Additionally, there are other tools available in SAP SRD-TRL GLO-Translation that can help you better manage your supplier relationships, such as Supplier Relationship Management (SRM) and Supplier Performance Management (SPM).