1. Help Center
  2. Tips, Tricks, & FAQ's
  3. Balance Sheet Planning Tips & Tricks

System Accounts Payable FAQs

Learn about AP

FAQ's

 

 

 

Why do I need to select an account that is for Accounts Payable (A/P)?

The A/P ACCRUAL ACCOUNTS represent which accounts should be considered when calculating A/P. This is typically all COGS & OpEx accounts less salary related accounts, depreciation and any other non-cash expenses. 

 

What is the A/P Delay?

A/P will then be calculated as following depending on the A/P Delay selected. 

  • A/P Delay Net 0: Prior Month A/P Balance + Current Month Expenses as defined by the A/P Accrual Accounts - Current Month Expenses (no net effect)
  • A/P Delay Net 30: Prior Month A/P Balance + Current Month Expenses as defined by the A/P Accrual Accounts - Prior Month Expenses 
  • A/P Delay Net 60: Prior Month A/P Balance + Current Month Expenses as defined by the A/P Accrual Accounts - 2 Months Prior Expenses