Tilivelka

Tilivelka is a Finnish accounting term referring to a liability that arises when a person or organization purchases goods or services on credit, creating an obligation to pay the supplier in the future. It is typically recorded as a current liability on the balance sheet and is closely related to trade payables (ostovelat). In practice, tilivelka is often used interchangeably with ostovelka, though ostovelat more narrowly describe payables to suppliers for ordinary business purchases.

Recognition and measurement: The liability is recognized at the invoiced amount when the goods or services are received and the obligation to pay arises. If payment terms include discounts for early payment, the accounting records may reflect the discount by adjusting the liability or the related expense. Interest or penalties may accrue if the bill remains unpaid beyond the agreed due date.

Liquidity and reporting: Tilivelka affects a company’s working capital and liquidity, as rising payables defer cash outflows. A common metric related to tilivelka is the days payable outstanding (DPO), which indicates how long payables remain unpaid relative to operating costs. On the balance sheet, tilivelka appears under current liabilities, signaling obligations expected to be settled in the near term.

Context and scope: In Finnish financial reporting, tilivelka covers obligations to suppliers and other short-term payables arising from ordinary commercial activity. It distinguishes itself from receivables (myyntisaatavat) and from non-operational debts such as taxes (verovelat) or long-term loans ( lainat) by its creditor base and nature. Understanding tilivelka helps assess a company’s short-term liquidity and supplier credit terms.