Description: Accounts payable days
[A] Trade accounts payable at month end inclusive of Sales Tax, GST, VAT or other taxes where applicable. ($000) = (Value A amount)
[B1] Total months trade purchases inclusive of Sales Tax, GST, VAT or other taxes where applicable. ($000) = (Value B1 amount)
To calculate: (365 x A) / (B1 x 12)

Description: The cost of the purchasing function as a percentage of total gross sales (or issues value for supply).
Costs to be included (Use same period for costs and sales.):
- Management, clerical time, etc;
- Department overheads (eg postage, stationary, telephone);
- All related IT costs.