Accounts Payable
Money owed to vendors or suppliers.
Definition
Accounts Payable is Money owed to vendors or suppliers. In day-to-day operations, it matters when money is owed, received, or reconciled and the books have to match the real-world balance.
Operationally, it matters because cash control breaks down quickly when open items sit too long or never tie back to the bank. The term matters because collections, vendor payments, and close accuracy all depend on it.
Use cases
Use Accounts Payable to match open balances to actual cash movement before close.
Review Accounts Payable when the team needs to spot whether receivables, payables, or cash are drifting out of sync.
Track Accounts Payable so operations can keep settlement work from turning into unexplained month-end noise.