How To Calculate Average Accounts Payable
It is the sum of Opening Accounts Payable and Closing Accounts Payable divided by two (2). Mathematically, we can show as below: Average Accounts Payable = Opening Accounts Payable + Closing Accounts Payable / 2 Average Accounts Payable / Creditors helps us in keeping our Credit Purchases and payments to suppliers in balance during the accounting cycle.