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What is average payment?

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Anonymous

12y ago
Updated: 11/24/2022

Average Payment Period is the total opposite of the Average Collection Period. This is the average time taken by the company to pay off its credit purchases.

Formula:

APP = Accounts Payable / (Annual Credit Purchases / 365)

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Aisha Wiza

Lvl 10
2y ago

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Average Payment Period is the total opposite of the Average Collection Period. This is the average time taken by the company to pay off its credit purchases.Formula:APP = Accounts Payable / (Annual Credit Purchases / 365)