Accounts payable or “payables” is the term used in corporate treasury to refer to a company’s debts that need to be paid to a supplier within a given period.
Accounts payable automation
Accounts payable are registered as accounting entries on the company’s balance sheet under the “current liabilities” section and refer to the company’s obligations to pay a short-term debt to a supplier or a creditor.
Accounts payable are typically registered in the accounting books when the company receives an invoice. That way, the accounts payable category registers the total debt the company owes to its providers. When the invoice has been paid, the bookkeeper enters a credit in the accounts payable column.
To balance these entries, the accountant enters a debit in the appropriate category when the debt is incurred, and then a credit in the cash column when the bill has been paid.
International companies with significant invoice processing needs tend to integrate accounts payable automation solutions in order to simplify operations, reduce processing time and effort and increase process efficiency in the treasury team.