Accounts Payable (AP)

Definition

Money owed to suppliers for goods or services already received, supported by an invoice. The amount, counterparty, and due date are documented — the most concrete short-term liability.

Worked Example

June 5: agency delivers a brand video, invoices $15,000, net-30.

June 5  - Record:
   Expense (Marketing)   +$15,000   -> June P&L
   Accounts Payable      +$15,000   -> balance-sheet liability

July 4  - Pay:
   Bank account          -$15,000
   Accounts Payable      -$15,000   -> liability cleared

Expense appears once (June); cash moves once (July); AP connects them.

Interpretation & Pitfalls

Net-30/60 terms are effectively a free short-term loan from suppliers. Manage the AP aging schedule: pay neither early nor late.

In TupicFinance

An unpaid cost item with an attached invoice is automatically classified liability_type = AP.