Days Payable Outstanding (DPO)

DPO estimates the average number of days a business takes to pay suppliers. A common formula is average trade payables divided by credit purchases for the period, multiplied by the number of days; cost of sales is sometimes used as a proxy.

Odoo’s Aged Payable and accounting reports provide the underlying payable balances and transaction data. The Executive Summary includes average creditor days, but check its calculation before treating it as your chosen DPO formula; a custom calculation may be needed for consistent purchases-based analysis.