What is Accounts payable? What is AP in accounting? Things to know
What is Account payable ? This is a very popular term in the financial field. However, not everyone clearly understands the meaning of this term. In the following article of MISA MeInvoice , let’s learn more about account payable.
Table of Contents Hide
1. What is Accounts payable?
2. Some things to know about AP in accounting
2.1 AP Dimensions
2.2 What is debt?
Conclusion
1. What is Accounts payable?
What is accounts payable?
Accounts payable (abbreviated as AP) is a term used to refer to various debts that a business is required to pay within a certain period of time, usually one year. These debts are called current liabilities. Current liabilities is a term used to refer to an accounting category in which businesses are required to pay back all the debts they have borrowed to their creditors within a certain period of time.
In addition, sometimes businesses also use the word AP to name a certain department. The AP department of a business will be responsible for managing and paying the various debts of the business to creditors or investors.
In addition Account payable also appears
in family activities when families need exploring the power of meme to pay for minimum monthly consumer services, such as: electricity, water, telephone, etc.
2. Some things to know about AP in accounting
Currently, the term accounts payable is mainly used in canada email lead manufacturing and retail businesses. Here are some things to know about accounts payable in retail.
2.1 AP Dimensions
In the retail sector, the term accounts payable includes 14 dimensions as follows:
AP Dimensions
Accounts Payable
Supplier’s debt
Business Buyers
Debt term
Different purchasing channels
Purchase invoices
Goods purchased but returned to seller
Delivery Vendor Tracking Activity
Manage receiving goods from suppliers
Credit bills
Adjustment of debt from suppliers
Commonly used business payment methods
Prepaid Deposit
2.2 What is debt?
To better understand accounts payable, we also need to understand the definition of accounts payable. Accounts payable is defined as the receivables and payables of a business unit during a specific business period.
Understanding the definition of accounts receivable will help your business operations run more smoothly. In a business, accounts receivable usually includes the following main items:
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