ADP and DBT

Calculation and significance of ADP and DBT in Bilendo Analytics.

Average Days to Pay (ADP) Calculation:

The ADP refers to the number of days between the receivable date and the payment date. We calculate this metric for each positive invoice. To arrive at the ADP, the average days to pay are calculated per customer. More on this below.

Example 1: One receivable <> One payment

Document	Type	Amount	Document Date	Due Date	ADP
Document 1	Receivable	€5,000	01/01/2021	01/15/2021	14
Document 2	Payment	€5,000	01/15/2021	-	-

In this example, the ADP is 14 days. The invoice was paid in full 14 days after the invoice date. If multiple payments are assigned to a receivable, Bilendo automatically weights the ADP. In this case, the weighted payment date is calculated (how much of the receivable was paid at what point in time) before the ADP calculation is performed.

Example 2: One Receivable <> Two Payments

Document	Type	Amount	Document Date	Due Date	Weighted Payment Date	ADP
Document 3	Receivable	€1,000	01/01	01/15	-	5
Voucher 4	Payment	800 €	04.01	-	06.01	-
Voucher 5	Payment	200 €	14.01	-	06.01	-

Days Beyond Terms (DBT) Calculation:

Days Beyond Terms is a metric that shows how quickly a debtor pays receivables relative to the due date. The ADP ignores the due date.

The calculation is quite simple: we take the due date and compare it with the weighted payment date. If the DBT is negative, the invoice was settled before the due date. This means that the lower the DBT, the faster the debtor paid relative to the due date.

Example 3: Multiple Receivables <> Multiple Payments

Type	Amount	Document Date	Due Date	Weighted Payment Date	ADP	DBT
Receivable	€5,000	01/01	01/31	-	136	106.80
Claim	€5,000	01.02	03.03	-	105	75.80
Payment	€2,000	30.03	-	17.05	-	-
Payment	€8,000	30.05	-	17.05	-	-

If multiple payments settle multiple invoices, we calculate the ADP and DBT for each receivable.