===== What does Offtoa do with production days and inventory days? =====

<php>echo $conf['comp_name'];</php>'s goal is to produce pro forma financial statements for you that of sufficient enough detail for investors and lenders. Here is what <php>echo $conf['comp_name'];</php> does with these two numbers:
  - <php>echo $conf['comp_name'];</php> adds the two numbers together and assumes this is the lead time required for purchasing raw materials before a customer purchase. 
  - Once revenues are computed based on your assumptions, <php>echo $conf['comp_name'];</php> uses this lead time to determine:
    - When raw materials need to be purchased
    - When the company must pay for raw materials (the above date plus payment terms you've negotiated with suppliers)
    - Inventory entries for the balance sheet and cash flow statement during the months between the raw material purchase date and the customer purchase date.

{{keywords>production days, inventory days, inventory, purchasing, raw materials, manufacturing,ordering, balance sheet}}

**Related Question:**

**[[:faqs:cogs:how-change-timing|How do I change production days? How do I change days in inventory?]]**