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Aavenir Atlas early access is open Contractflow on the ServiceNow Store since 2019 Runs on ServiceNow, or standalone ProcureTech100 2025/26 Pioneering Digital Solution ISO/IEC 27001:2022 certified, SOC 2 Type 2 compliant

Glossary

What is accounts payable?

Accounts payable is the money a business owes suppliers for goods and services received but not yet paid, shown as a liability, and the team that pays it.

Schedule a Demo All Glossary Terms

Two meanings

  • The balance. The total of unpaid supplier invoices, recorded as a current liability on the balance sheet.
  • The function. The team that receives, checks, approves and pays supplier invoices on time and correctly.

Accounts payable differs from notes payable, which are formal written promises to repay borrowed money with interest.

How the process works

  1. Receive the supplier invoice
  2. Capture and check its details
  3. Match it to the purchase order and receipt
  4. Route it for approval
  5. Schedule payment within the agreed terms
  6. Record the payment and update the balance

Management may choose to pay close to the due date to keep cash longer, or early to take a discount. Either way, accurate and timely payment protects supplier relationships.

How Aavenir handles it

Invoiceflow automates accounts payable around the contract: it captures invoices, matches them to orders and receipts, and checks rates, discounts and tax terms against the signed contract. Exceptions go to a person before payment.

Measures worth tracking

  • Invoices paid on time
  • Time from invoice receipt to approval
  • Share of invoices matched on the first pass
  • Early payment discounts taken
  • Duplicate or incorrect payments found

Keep reading

Accounts payable automation Accounts payable automation uses software to capture supplier invoices, extract their data, match them to orders and route approvals with little manual entry.Read more Invoice approval Invoice approval is reviewing and authorizing a supplier invoice before it is recorded and paid, to confirm the goods or services arrived at the agreed price.Read more Notes payable Notes payable are written promises to repay borrowed money with interest by a set date, recorded as a liability on the borrower's balance sheet until they are paid.Read more

Frequently asked questions (FAQ)

Common questions

Is accounts payable an asset or a liability?

A liability. It is money the business owes to suppliers, usually due within a year, so it is listed under current liabilities. It is reported on the balance sheet. Read about notes payable.

What is the difference between accounts payable and accounts receivable?

Accounts payable is what you owe suppliers. Accounts receivable is what customers owe you. One is a liability, the other an asset. Both affect working capital. Read about accounts payable automation.

How can accounts payable avoid overpaying suppliers?

Match each invoice to the order, the receipt and the contract terms, check for duplicates and route exceptions to a person before payment. A clean supplier record helps too. See Invoiceflow.

Have a question we have not answered? Ask the Expert

Schedule a demo

See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

Prefer to talk first? Contact the team.