Accounts Payable Definition

Accounts payable (AP) is a short-term debt and a liability on a balance sheet where a business owes
money to its vendors/suppliers that have provided the business with goods or services on credit.
Accounts payable is also referred to as the department that handles vendor invoices or bills and records
the short-term debts in the general ledger (GL). The AP department will verify invoices against
(purchase) orders and ensure the goods or services were received before issuing payment to their
vendors.