Accounts Payable

What is Accounts Payable?

Accounts Payable (AP) represents money a business owes to suppliers or vendors for goods or services purchased on credit. It's a current liability on the balance sheet and reflects short-term obligations that must be settled. Efficient AP management helps maintain good supplier relationships and optimize cash flow by taking advantage of credit periods and early payment discounts. In Tally, AP is tracked through sundry creditor ledgers with bill-wise details.