Accounts Payable
The terms behind paying suppliers correctly and on time, from the bill landing to the payment clearing.
5 terms
-
01
Core AP
Accounts Payable
A liability account representing money owed by a business to its creditors for goods or services purchased on credit.
-
02
Core AP
Creditor
A person, business, or other entity to whom money or other assets are owed.
-
03
Core AP
Days Payable Outstanding (DPO)
Days Payable Outstanding (DPO) measures the average number of days a company takes to pay its suppliers, calculated as accounts payable divided by cost of goods sold, multiplied by the number of days in the period.
-
04
Core AP
Disbursement
The payment or distribution of money, typically from organizational funds for expenses, loans, or other obligations.
-
05
AP Automation & Matching
Two-Way Matching
Two-way matching is the control that checks a vendor bill against its purchase order before payment goes out, comparing quantities and prices to catch overbilling, duplicate invoices, or unauthorized purchases.