(Increase in Accounts Payable (v2500.01))
Accounts Payable (v2500.00), also referred to as “Trade Accounts Payable,” are current liabilities. They represent debts that must be paid within the next year.
By entering the Increase in Accounts Payable (v2500.00) (a working capital account) as a Percent of the Change in Sales (v1000), you can account for the fact that the additional investments in working capital necessary to support sales growth usually can be partly financed with trade credit.
You can select the alternative forecast method, Days, and enter your forecast data in terms of Days in Payables, where the Associated Account is Cost of Goods Sold (v1040), or a subaccount of Cost of Goods Sold (v1040) denoting purchases.