OpenReference

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.

Calculation

On-time Payments Ratio
=	On-time Payments   × 100 % Payments

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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Hierarchy

ID	Name	Level	x
AE13	Days Payables Outstanding	2	AE13
AE132	On-time Payments Ratio	3	AE132

Term(s)

ID	Name	Clear	x
AP	Accounts Payable		AP

On-time Payments Ratio Days Payables Outstanding 51320 3 {{{keywords}}} {{{description}}}

Accounts Payable