Okuzeka
Accounting & Tax vocabulary · Invoices & Payments

Accounts payable

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, accounts payable means: Money a company owes to its suppliers for goods or services bought on credit, and also the team that processes and pays those supplier invoices.

In Turkish: ticari borçlar, satıcılar, borç hesapları

How it is used

Shortened to AP. It is a current liability on the balance sheet. People say 'send it to AP' or 'AP is processing the invoice'. The UK term trade creditors is also used.

Example sentences

  1. Accounts payable increased because we delayed some supplier payments to December.

  2. I work in accounts payable, so I deal with supplier invoices all day.

Common collocations

  • accounts payable team
  • AP invoice
  • accounts payable balance
  • AP aging report
  • accounts receivableMoney that customers owe a company for goods or services it has already delivered on credit, and also the team that collects those payments.
  • invoiceA document a seller sends to a buyer listing the goods or services supplied, the amount due, any VAT and the payment terms.
  • current liabilityA debt or obligation that a company must pay within one year, such as supplier invoices, short-term loans, taxes payable and unpaid salaries.
  • payment termsThe conditions agreed between buyer and seller about when and how an invoice must be paid, such as 'net 30' or a discount for early payment.
  • purchase orderA document a buyer sends to a supplier to order goods or services, stating the items, quantities, prices and delivery terms agreed.

More terms: Invoices & Payments

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This page explains English vocabulary for learners. It is not financial advice.