Accounts payable
In Arabic الذمم الدائنة
The money a business owes its vendors for goods or services already received and billed but not yet paid.
In plain words
Each vendor has a balance: bills posted, less payments made and debit notes raised. Together the balances show what you owe and when it falls due.
Paying on the due date, not before and not after, protects both cash and the vendor relationship. A payables aging shows what is due this week and what is already late.
The common mistake is paying from a pile of paper invoices, which leads to one bill paid twice and another forgotten.
- Opening balance
- SAR 20,000
- Bills
- + SAR 14,000
- Payments
- − SAR 18,000
- Debit note
- − SAR 1,200
- Closing balance
- SAR 14,800
In Axon Suite
How Axon Suite handles it
Payables in Axon Suite hold vendor bills, debit notes and payments. Each vendor shows its balance, with a vendor aging as of any date and a running statement for any period.
Feature
Bill what arrived, at the agreed price
Draw the bill from the goods receipt and each line is billed at the purchase order’s agreed price and discount, under the vendor’s own invoice number. You can’t bill more than was received, and the same vendor invoice can’t be entered twice.
Open: Bill what arrived, at the agreed price