Accounts Payable, or A/P in accountants' parlance, refers to products or services purchased by your business on credit from vendors for which payment has not yet been made. This is a liability, because your business owes money to others and you will have to pay it sooner or later.

Fortunately, the A/P system follows the A/R system like a clone. There are a few differences that we will highlight. However, for the most part, you can follow processes similar to that of A/R.