Essential Excel Formulas for Accounts Payable (AP) Management Managing accounts payable in Excel requires efficient tracking of due payments, invoice aging, reconciliation, and discount calculations. Below are some key formulas to streamline AP processes: 1. Invoice Due Date Calculation Determine when an invoice is due based on the invoice date and payment terms: = A2 + B2 • A2: Invoice Date • B2: Payment Terms (e.g., 30 for Net 30) 2. Identifying Overdue Invoices Check if an invoice is past its due date: =IF(TODAY()>C2,"Overdue","Not Due") • C2: Due Date 3. Calculating Days Past Due Find out how many days an invoice is overdue: =IF(TODAY()>C2, TODAY()-C2, 0) • C2: Due Date 4. Early Payment Discount Calculation Determine the discount amount if payment is made within the discount period: =IF(TODAY()<=D2, E2 * F2, 0) • D2: Discount Deadline • E2: Invoice Amount • F2: Discount Rate (e.g., 0.02 for 2%) 5. Outstanding Balance Calculation Track the remaining balance after partial payments: = E2 - SUM(F2:F10) • E2: Total Invoice Amount • F2:F10: List of Payments Made 6. Total Accounts Payable Calculate the sum of all unpaid invoices: =SUMIF(G2:G100, "Unpaid", H2:H100) • G2:G100: Payment Status Column (Paid/Unpaid) • H2:H100: Invoice Amount Column 7. Categorizing Invoice Aging (30-60-90 Days) Group overdue invoices into aging buckets: • 0-30 Days: =IF(AND(TODAY()-C2>=0, TODAY()-C2<=30), "0-30 Days", "") • 31-60 Days: =IF(AND(TODAY()-C2>30, TODAY()-C2<=60), "31-60 Days", "") • 61-90 Days: =IF(AND(TODAY()-C2>60, TODAY()-C2<=90), "61-90 Days", "") 8. Payment Due Reminder (Conditional Formatting) Highlight invoices that are due within the next 7 days: =AND(C2-TODAY()<=7, C2-TODAY()>0) Steps to Apply Conditional Formatting: • Select the invoice due date column. • Go to Conditional Formatting → New Rule → Use a Formula to Determine Which Cells to Format. • Enter the above formula and choose a highlighting colour. These formulas will help automate AP tracking, ensuring better cash flow management and timely vendor payments.

 Essential Excel Formulas for Accounts Payable (AP) Management

Managing accounts payable in Excel requires efficient tracking of due payments, invoice aging, reconciliation, and discount calculations. Below are some key formulas to streamline AP processes: 1. Invoice Due Date Calculation Determine when an invoice is due based on the invoice date and payment terms: = A2 + B2 • A2: Invoice Date • B2: Payment Terms (e.g., 30 for Net 30) 2. Identifying Overdue Invoices Check if an invoice is past its due date: =IF(TODAY()>C2,"Overdue","Not Due") • C2: Due Date 3. Calculating Days Past Due Find out how many days an invoice is overdue: =IF(TODAY()>C2, TODAY()-C2, 0) • C2: Due Date 4. Early Payment Discount Calculation Determine the discount amount if payment is made within the discount period: =IF(TODAY()<=D2, E2 * F2, 0) • D2: Discount Deadline • E2: Invoice Amount • F2: Discount Rate (e.g., 0.02 for 2%) 5. Outstanding Balance Calculation Track the remaining balance after partial payments: = E2 - SUM(F2:F10) • E2: Total Invoice Amount • F2:F10: List of Payments Made 6. Total Accounts Payable Calculate the sum of all unpaid invoices: =SUMIF(G2:G100, "Unpaid", H2:H100) • G2:G100: Payment Status Column (Paid/Unpaid) • H2:H100: Invoice Amount Column 7. Categorizing Invoice Aging (30-60-90 Days) Group overdue invoices into aging buckets: • 0-30 Days: =IF(AND(TODAY()-C2>=0, TODAY()-C2<=30), "0-30 Days", "") • 31-60 Days: =IF(AND(TODAY()-C2>30, TODAY()-C2<=60), "31-60 Days", "") • 61-90 Days: =IF(AND(TODAY()-C2>60, TODAY()-C2<=90), "61-90 Days", "") 8. Payment Due Reminder (Conditional Formatting) Highlight invoices that are due within the next 7 days: =AND(C2-TODAY()<=7, C2-TODAY()>0) Steps to Apply Conditional Formatting: • Select the invoice due date column. • Go to Conditional Formatting → New Rule → Use a Formula to Determine Which Cells to Format. • Enter the above formula and choose a highlighting colour. These formulas will help automate AP tracking, ensuring better cash flow management and timely vendor payments.

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