Accounts Payable
See what you owe your suppliers, how old each amount is and what falls due next, so you can plan payments.
Why and when you use it
Paying suppliers late damages trust and may cost you credit terms; paying too early squeezes your cash. Accounts Payable brings every unpaid supplier bill together, grouped by supplier and by how long it has been pending, so the owner or accountant can decide what to pay this week.
Before you start
- Record all supplier bills in Purchases
- Record all supplier payments (Purchases or Payments)
Step by step
- Open Accounts PayableOpen Accounts Payable from the Purchases area. It lists what you owe each supplier.
- Look at the age of each amountCheck how old each unpaid amount is. Older amounts are usually the most urgent, especially if the supplier is pressing for payment.
- Check what is due nextLook at what falls due in the coming days so you can keep enough money in the bank.
- Drill into a supplierFor details of one supplier's bills, open their Supplier Ledger in Purchases.
- Pay the billsPay using Record Supplier Payment in Purchases, or Record Payment in Payments with the type Payment (to Supplier). Match it to the right bills.
- Confirm the balanceCome back to Accounts Payable and check that the supplier's amount has reduced.
Worked example
On Monday 23 Nov 2026 the owner of Sharma Traders has ₹2,00,000 to spend on supplier payments. Accounts Payable shows Hindustan Foods Pvt Ltd at ₹1,29,000, of which ₹35,000 is from an old bill, plus two smaller local suppliers.
- Open Accounts Payable and look at how old each amount is.
- The ₹35,000 opening amount to Hindustan Foods is the oldest; the ₹94,000 bill of 10 Nov 2026 is due soon.
- The owner decides to clear Hindustan Foods in full (₹1,29,000) and pay ₹50,000 to a local supplier.
- Payments: Record Payment, type Payment (to Supplier), Hindustan Foods, ₹1,29,000, Fill oldest bills first, Save Payment.
- Back in Accounts Payable, Hindustan Foods shows ₹0.
Result: The oldest dues are cleared first, ₹1,79,000 leaves the bank, and the payable list shows only the remaining local supplier balance.
💡 Tips
- Review payables once a week on a fixed day and plan a payment run.
- Use Fill oldest bills first in Payments so old bills do not stay open while new ones are paid.
- Use the Cash Flow Forecast to see if upcoming payments will push your bank balance too low.
⚠️ Common mistakes
- Paying a supplier without recording it, so the bill stays in payables and you might pay it again.
- Forgetting purchase returns, so you pay for goods you sent back. Record returns in Purchases before paying.
Questions
Why does a supplier show a balance I have already paid?
The payment may not be recorded or not matched to the bill. Check the Supplier Ledger and the Payments list.
🎬 Video walkthrough (script — recording coming soon)
- Scene 1: Open Accounts Payable and explain what it lists.
- Scene 2: Point out the oldest amounts and what is due next.
- Scene 3: Open one supplier's ledger in Purchases.
- Scene 4: Record a supplier payment with Fill oldest bills first.
- Scene 5: Return to Accounts Payable to see the lower balance.