Glossary  -> Accounts payable

Accounts Payable

Accounts payable (A/P) are amounts owed by a business to their suppliers, for goods or services they have purchased.

The general ledger account for A/P is used to record all A/P transactions.  These transactions will also be recorded in the A/P subsidiary ledger (subledger), which tracks the balances for each supplier.

When accounting software is used, the A/P subledger is used to produce reports at the end of each month, showing the amounts payable to each supplier, and the "age" of these amounts.

See also accounts payable turnover.

Revised: October 26, 2023