How to calculate average payment terms

[eekbubble]

Hi all

Using the attached sheet, I'm trying to use a formula to calculate the average payment terms for all purchases made across all suppliers. I'm thinking maybe a weighted average? Each supplier has a different number of purchases and the credit days are different too.

Any help would be appreciated.

[popipipo]

=SUM(B2:B7)/SUM(C2:C7)

May be this??

[eekbubble]

Thanks but I don't think this is right. It returns a number of 1.29 which is much too low. As the number of credit days offered by each supplier is either 60 or 90, it should be between this number?

[popipipo]

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Is 76.03 better?