Accounts Payable & Payment Planning
Analyse supplier liabilities, plan payment timing, estimate early-payment
discount savings and identify overdue payables. Use the results to
understand upcoming cash requirements and make informed payment decisions.
1. Accounts Payable Details
Enter the total amount currently owed to suppliers.
Enter the portion of outstanding payables scheduled for payment during your planning period.
Enter the portion of outstanding supplier invoices that are already overdue. This amount should be included in total outstanding payables.
2. Early-Payment Discount Analysis
Enter the supplier invoice amount eligible for the discount, before applying the discount percentage.
Enter the discount percentage offered by the supplier.
Enter how many days earlier you must pay to obtain the discount. This is used to annualise the discount benefit.
3. Payment Planning
Enter the payment amount you plan to make during the planning period.
Enter the cash budget available specifically for supplier payments during the same period.
Calculate Payment Plan
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Practical Example
Consider a business reviewing its supplier payment obligations for
the coming month.
1. Accounts Payable Details
- Total outstanding accounts payable: ₹8,00,000
- Payables due in the planning period: ₹3,00,000
- Overdue payables: ₹50,000
After a planned payment of ₹2,50,000:
Outstanding Payables = ₹8,00,000 − ₹2,50,000
Outstanding Payables Remaining = ₹5,50,000
Payables Due Remaining = ₹3,00,000 − ₹2,50,000
Payables Due Remaining = ₹50,000
Assuming overdue invoices are paid first:
Overdue Payables Remaining = Maximum of
(₹50,000 − ₹2,50,000) or zero.
Overdue Payables Remaining = ₹0
2. Early-Payment Discount Analysis
- Discount-eligible invoice amount: ₹2,00,000
- Early-payment discount: 2%
- Days paid earlier than normal: 20 days
Discount Savings = ₹2,00,000 × 2% = ₹4,000
Net Payment After Discount = ₹1,96,000
Annualised Discount Benefit Rate =
(2 ÷ 98) × (365 ÷ 20) × 100.
Annualised Discount Benefit Rate ≈ 37.24%
This rate annualises the benefit of paying 20 days early to obtain
the discount. It is not the same as a guaranteed annual investment return.
3. Payment Budget Analysis
- Planned supplier payment: ₹2,50,000
- Cash available for supplier payments: ₹3,00,000
Payment Budget Shortfall = Maximum of
(₹2,50,000 − ₹3,00,000) or zero.
Payment Budget Shortfall = ₹0
Cash Remaining = ₹3,00,000 − ₹2,50,000
Cash Remaining = ₹50,000
How to Use This Calculator
- Enter total outstanding payables, amounts due and overdue amounts.
- Enter the amount eligible for a supplier discount and the discount terms.
- Enter the planned supplier payment and available cash budget.
- Click Calculate Payment Plan to review the results.
- Click Reset to clear the fields and analyse another payment scenario.
Important: This calculator supports payment planning;
it does not replace invoice-level scheduling. Actual payment priorities
should consider contractual due dates, supplier relationships, penalties,
discount deadlines and cash availability.