Accounts Payable is a Subledger in which all credit purchases are recorded upon receipt of supplier Invoices. In Financial Reporting Accounts Payable is the total amount due to suppliers for products or services purchased on credit. The Accounts Payable amount represents the unpaid portion of supplier invoices. Wages, taxes and notes payable are not included in Accounts Payable.
The primary document recorded in the Accounts Payable ledger is the supplier invoice. Credits received from suppliers Credit Notes are also recorded in the Accounts Payable ledger.
A typical entry in Accounts Payable includes:
Alternative names for Accounts Payable include: Payables, Trade Payables, Trade and Other Payables.
|AE13||Days Payables Outstanding||2||AE13|
|AE131||Early Payments Ratio||3||AE131|
|AE132||On-time Payments Ratio||3||AE132|
|AE133||Late Payments Ratio||3||AE133|
|AE134||Duplicate Payments Ratio||3||AE134|