I have been asked to break out the purchases(COGS) from our discount term suppliers separately to find the DPO and then calculate the DPO on the non-discount term suppliers. Is this calculation any different than the normal way?

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The calculation would not be any different but your inputs will be. You will have to break up your total COGS to separate out COGS for your discount term vendors for that DPO calculation, and use the rest of your COGS for the non-discount vendors DPO.

Whether you include your non-inventory items in your DPO calculation depends on what you are trying to measure. You would include it for your total DPO. But if you want to isolate your inventory purchases only, leave the non-inventory spend out then this will measure you DPO related to inventory purchases. Just make sure to include only the inventory payables. Some companies that want to know their inventory vs. non-inventory DPO calculations will actually have two A/P trade accounts- one for inventory purchases and one for non-inventory to help facilitate their calculation.

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