What are accounts payable?

Accounts payable are all those debts that a company or organization has incurred and that have not yet been paid. They are debts directly related to the activity that takes place.

The concept of accounts payable indicates that there is a debt with a creditor and that you must make the payment for it. These are usually payments to Suppliers for the purchase of raw materials for the production of products or services.

The amount of money indicated by accounts payable in accounting are considered as credits in which the banks do not appear. In most cases, they are not considered bad debts, but are accounts that the company owes and that have not yet been paid because the payment conditions have been negotiated, such as the 60-day payment.

 

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