Definition
Accounts payable is the total amount a business owes to its suppliers for goods and services received but not yet paid for. It is a current liability. From a supplier's point of view, the client's accounts payable department is the team that approves and schedules payment of invoices.
Also called: AP, Payables
Accounts payable in practice
Understanding how a client's AP process works, including whether they require PO numbers, when payment runs happen, and who approves invoices, is the fastest way to get paid on time by larger companies.
Frequently Asked Questions
Why does accounts payable reject invoices?
Common reasons are a missing PO number, a mismatch between invoice and PO amounts, the wrong billing entity, missing tax details, or being sent to the wrong email address.