What is Accounts Payable?
Accounts payable is the money a business owes its suppliers for goods or services it has received but not yet paid for.
Updated
Meaning
English
Accounts payable is the money a business owes its suppliers for goods or services it has received but not yet paid for.
Roman Urdu
Accounts payable woh raqam hai jo dukaan ne suppliers ko deni hai, un saman ya services ke liye jo mil chuki hain magar paise abhi nahi diye.
Also called payables, creditors, AP, dena, supplier dues.
Example
A kiryana owes the oil distributor 95,000 rupees, the biscuit distributor 42,000 and a local dairy 18,000. Total payables are 155,000 rupees, with the oil bill due on Friday.
How it works
Supplier credit is how most Pakistani shops finance their stock: the distributor's salesman leaves goods and collects next visit. Payables are the shop's side of the khata. Managing them well means paying on the agreed date (to keep credit and discounts), not paying too early (which drains cash), and checking every supplier statement against your own purchase records before paying.
Disputes usually come from returns and short deliveries that were never adjusted. Recording each purchase, payment and purchase return against the supplier keeps the balance agreed by both sides.
In Nafaa
Each supplier in Nafaa has a ledger of purchases, payments and returns with a running balance. Purchases can be paid fully or partly, a purchase return lowers what is owed, and the purchases list filters bills still on credit.
Related terms
- Accounts Receivable
Accounts receivable is the money customers owe a business for goods or services already supplied on credit.
- Purchase Order (PO)
A purchase order is a document a buyer sends a supplier listing the items, quantities and agreed prices it wants to buy.
- Debit Note
A debit note is a document a buyer sends a supplier when returning goods or claiming a deduction, recording that the amount owed should go down.
- Cash Flow
Cash flow is the movement of money into and out of a business over a period, which shows whether it has enough cash to pay its bills on time.