Accounting & Finance
Accounts payable (AP)
Definition
Accounts payable is the money a business owes its suppliers for goods or services received on credit and not yet paid, recorded as a liability.
How does the accounts payable process work?
- Receive and record the supplier invoice.
- Check it against the order and delivery with a three-way match.
- Approve and schedule payment by the due date.
- Reconcile supplier statements each month.
The steps are in accounts payable three-way match.
How is accounts payable different from accounts receivable?
Accounts payable is what you owe suppliers, while accounts receivable is what customers owe you. The Purchase Invoice Processing and Accounts Payable Recording course covers AP in practice.
Where can you go next?
Courses, checks and reading on the same work.- CoursePurchase Invoice Processing & Accounts Payable Recording
- CourseSupplier Payment Processing & Accounts Payable Reporting
- CertificationCertified AP/AR Administrator (CAPR)
- Free online assessmentAre your payables and receivables under control? Free AP/AR process check
- GuideWhat is a three-way match in accounts payable?
- Glossary termThree-way match
- Glossary termAccounts receivable (AR)
Which sources does this page use?
This page states no statutory figures, so it cites no official source.
Updated 20 October 2026. General information from the Certifyd team, not legal, tax or safety advice for your workplace.