Finance & Accounting
Days Payable Outstanding
DPO
Average days a business takes to pay suppliers — balances cash conservation with vendor relationships.
What it means
DPO = (Accounts Payable / Cost of Goods Sold) × Number of Days. Higher DPO conserves cash but may strain vendor relationships and forfeit early-payment discounts.
How Easedesk handles Days Payable Outstanding
Easedesk tracks DPO by vendor and overall. Payment scheduling balances DPO targets with early-payment discount capture.
Related terms
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