What is Accounts Payable (AP)?
What you owe suppliers for what you have already received - the bills side of the ledger.
Accounts Payable (AP): definition
Accounts payable represents your short-term obligations to suppliers. When you receive a bill on terms, it becomes AP until paid. Managing AP well means paying accurately and on time (protecting supplier relationships and discounts) while optimizing timing to preserve cash. It is the counterpart to accounts receivable on the other side of a transaction.
- A current liability: bills received but not yet paid
- Managed through the procure-to-pay / invoice-to-pay cycle
- Controls include approval workflows and three-way matching
- Payment timing (DPO) is a working-capital lever
How Fintra handles it
Fintra automates AP end to end: bills are captured and coded (AI reads the invoice), matched three ways against PO and receipt, routed for approval, and scheduled to pay on the optimal date. Every payment posts to the ledger and runs through governance, so a named human approves anything consequential and each approval is logged as evidence.
Worked example
Frequently asked questions
Is accounts payable a liability?
Yes, a current liability. It is money you owe suppliers for goods or services already received but not yet paid for. It sits on the balance sheet until you settle the bill.
What is the accounts payable process?
Capture the invoice, code it to the right accounts, match it against the purchase order and goods receipt, route it for approval, and schedule payment. Strong AP adds controls like three-way matching and approval limits to prevent errors and fraud.
What is the difference between accounts payable and accounts receivable?
Accounts payable is what you owe suppliers (a liability); accounts receivable is what customers owe you (an asset). Every credit transaction creates AP for the buyer and AR for the seller.
How does Fintra automate accounts payable?
Fintra reads and codes invoices with AI, runs a three-way match, routes approvals, and schedules payments on optimal dates - posting each to the ledger under governance so approvals are logged and controls are enforced.
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