Accounts payable (AP): definition, example, and why it matters
AP is a liability. Paying AP late saves cash short-term but can damage supplier relationships and trigger COD terms. Best practice: pay early when you get a discount, otherwise on the due date.
Short definition. Money you owe suppliers for goods or services received but not yet paid.
Category. Accounts payable (AP) is a invoicing term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds accounts payable (ap) into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does accounts payable (ap) mean?
AP is a liability. Paying AP late saves cash short-term but can damage supplier relationships and trigger COD terms. Best practice: pay early when you get a discount, otherwise on the due date.
