Trade payables

Trade payables in the financial statements

Trade payables is a balance-sheet line item: a balance at a date, with a credit balance in the ledger. Metrics read it as a positive number, although the ledger stores credits as negative amounts.

Trade payables in Business Central

How the accounts are selected

• Plus 2 accounts assigned directly: 22100 Accounts Payable, Domestic, 22200 Accounts Payable, Foreign

2 posting accounts in total.

Posting accounts

• 20000 Liabilities
  • 22000 Current Liabilities
    • 22100 Accounts Payable, Domestic
    • 22200 Accounts Payable, Foreign

Metrics using trade payables

• Free Cash Flow to Equity (through another metric): Net profit − change in non-current assets − change in Trade Working Capital + change in financial debt
• Free Cash Flow to Firm (through another metric): EBIT − Income tax − change in non-current assets − change in Trade Working Capital
• Trade Working Capital: Trade receivables + Inventory − Trade payables