Accounts Payable (AP) refers to the outstanding debts or obligations a business has to its suppliers, vendors, or creditors for goods or services received but not yet paid for. It represents the short-term liabilities of a company. The AP department is responsible for managing and tracking these obligations, ensuring that invoices and payment terms are accurately recorded and processed in a timely manner.

The accounts payable process includes activities such as invoice verification, matching purchase orders and receiving reports, initiating payments, and maintaining vendor records. Effective management of accounts payable is essential for maintaining good relationships with suppliers, managing cash flow, and ensuring the financial health of the organization.