# How do I calculate the number of days of accounts payable for the BRSR?

Canonical: https://senseible.earth/answers/brsr-days-of-accounts-payable-formula

The Business Responsibility and Sustainability Report (BRSR) format prints the formula in the question itself: (Accounts payable x 365) / Cost of goods or services procured. It sits under Principle 1, essential indicator 8, and is reported for the current and the previous financial year.

## What the format says

Principle 1, essential indicator 8 reads: "Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured)", with one cell for the current financial year and one for the previous.

## What the format does not say

- It does not define accounts payable, so it does not say whether to use the year-end balance or an average of opening and closing.
- It does not say which costs are in cost of goods or services procured.
- Choose a basis, state it in a remark, and use the same one in both years so the two figures can be compared.

## Reading a buyer's figure as a supplier

A buyer reporting 55 days is, on average, taking about 55 days to settle what it owes its suppliers. That is our reading of the ratio, not a statement from the Securities and Exchange Board of India (SEBI), and it is an average across all suppliers, so your own invoices can be paid faster or slower.

## Example: one year

- Accounts payable at year end: rupees (Rs) 3.6 crore
- Cost of goods and services procured in the year: Rs 24 crore
- Days of accounts payable = 3.6 x 365 / 24 = 1,314 / 24 = 54.75, so about 55 days

The amounts are an example. A crore is 10 million.

## What Senseible does here

Senseible reads fuel invoices and electricity bills into monthly records. It does not hold payables or payment terms, so this figure stays with your accounts team.

- [BRSR Core: the nine attributes and KPIs](https://senseible.earth/answers/brsr-core-nine-attributes-explained)
- [BRSR openness of business rows](https://senseible.earth/answers/brsr-openness-of-business-trading-houses-dealers-related-parties)
- [BRSR and BRSR Core in plain words](https://senseible.earth/brsr-reporting)

Sources: [SEBI, Updated BRSR format, Annexure II to circular of 12 July 2023](https://www.sebi.gov.in/sebi_data/commondocs/jul-2023/Annexure_II-Updated-BRSR_p.PDF), [SEBI, master circular for LODR compliance, 11 July 2023, BRSR guidance note and formats](https://www.sebi.gov.in/sebi_data/attachdocs/jul-2023/1689087475880.pdf)

Last reviewed 2026-11-05. The guidance and formats are from SEBI's 11 July 2023 master circular and the Annexure II format. SEBI's April 2025 FAQ names a later master circular dated 11 November 2024, so check the current guidance note and format before you file.