Accounts Payable

Commercial accounts payable and represent obligations to pay suppliers of goods or service providers

Accounts payable are amounts owed to suppliers for goods or services received on credit. They are typically current liabilities and are managed through payment terms and vendor controls.

- Used in the purchase-to-pay cycle to validate invoices, approvals, and supporting documents.
- Used to strengthen internal controls over purchasing and supplier payments.

- Example: Before payment, the AP team applies **Accounts Payable** to confirm the invoice matches the approved purchase documentation.

- Why it matters: Prevents incorrect/duplicate payments, reduces fraud risk, and improves accuracy of payables and expenses.