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Definition · AP/AR

Accounts payable

Accounts payable represents amounts a company owes suppliers for goods and services received but not yet paid. For accounts payable, the useful boundary is the source cash view, timing horizon, owner, liquidity exposure, and operating decision before payment timing, runway, or financing options change.

Also known as AP, trade payables, payables

Written by Pluvo TeamReviewed by Pluvo Team
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Why it matters

Understanding accounts payable matters because cash decisions are time-sensitive. Teams need to know when money moves, which balance changes, who owns the next action, and what can still be changed before liquidity tightens. Pluvo reads AP across systems to track DPO, approval status, and PO-match exceptions, and flags duplicate or out-of-policy payments before they post.

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In practice

  • Liquidity example

    Finance teams use accounts payable when they need to understand cash timing before a decision is made. A team might compare expected receipts, payroll, vendor payments, and debt obligations to decide what action is needed this week.

  • Pluvo example

    Pluvo reads AP across systems to track DPO, approval status, and PO-match exceptions, and flags duplicate or out-of-policy payments before they post.

In practice, teams should define accounts payable with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.

Understanding accounts payable matters because cash decisions are time-sensitive. Teams need to know when money moves, which balance changes, who owns the next action, and what can still be changed before liquidity tightens. Pluvo reads AP across systems to track DPO, approval status, and PO-match exceptions, and flags duplicate or out-of-policy payments before they post.

A strong workflow for accounts payable separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.

Pluvo reads AP across systems to track DPO, approval status, and PO-match exceptions, and flags duplicate or out-of-policy payments before they post.

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FAQ

What is accounts payable?

Accounts payable represents amounts a company owes suppliers for goods and services received but not yet paid. For accounts payable, the useful boundary is the source cash view, timing horizon, owner, liquidity exposure, and operating decision before payment timing, runway, or financing options change.

What is the difference between accounts payable and accounts receivable?

The boundary for accounts payable differs from related terms by scope, source data, time period, and decision use. In this glossary, it covers amounts a company owes suppliers for goods and services received but not yet paid, so teams should compare those boundaries before using it in reporting or planning.

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Sources

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