Learn about Accounts Payable
FAQs
Why do I need to select an account that is for Accounts Payable (A/P)?
The A/P ACCRUAL ACCOUNTS represent which accounts should be considered when calculating A/P. This is typically all COGS & OpEx accounts less salary-related accounts, depreciation and any other non-cash expenses.
What is the A/P Delay?
A/P will then be calculated as follows depending on the A/P Delay selected.
- A/P Delay Net 0: Prior Month A/P Balance + Current Month Expenses as defined by the A/P Accrual Accounts - Current Month Expenses (no net effect)
- A/P Delay Net 30: Prior Month A/P Balance + Current Month Expenses as defined by the A/P Accrual Accounts - Prior Month Expenses
- A/P Delay Net 60: Prior Month A/P Balance + Current Month Expenses as defined by the A/P Accrual Accounts - 2 Months Prior Expenses
Additional Resource: Plan for Accounts Receivable & Accounts Payable