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On-time Payments Ratio Days Payables Outstanding 51320 3 {{{keywords}}} {{{description}}}
AE132
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Latest revision as of 14:48, 10 June 2017
On-time Payments Ratio measures the amounts paid on the due date and payments made before the due date with early payment discounts applied as a percentage of total annual supply chain costs paid.
Contents
Calculation
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where:
- On-time Payments = Total amounts paid on-time in the reported period. On-time includes early payments where early-payment-discounts were applied
- Payments = Total amounts disbursed in the reported period
Unit of measure: %
Notes
On-time generally means on the date payment was due. In case the disbursements are made less frequent than daily, the closest payment date to the due date is considered on-time, only if no penalty was incurred. Otherwise it is considered Late.
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