Available modeling methods
| Method / input | Behavior |
|---|---|
| Amount | Explicit closing payable balance per model item. |
| Days / DPO | Positive annual COGS × payment days ÷ 365. |
Reconcile supplier payments
Supplier payments follow purchases and the change in payables. Higher closing payables preserve cash, while repayment consumes it. The target cannot exceed opening payables plus current purchases; otherwise it would imply a supplier cash inflow unsupported by the model. Explicit actuals must respect those flows.
Example workflow
Change DPO from 30 to 45 while keeping COGS and inventory assumptions fixed. Check the cash benefit and the resulting liability. DPO uses COGS as its annual modeling base, while actual supplier cash payments also reflect inventory-driven purchases. Compare Debt separately when financing the business.
Documents the current implemented behavior. Example assumptions are not market data.