Payable

A payable is an amount owed to another party; trade payables normally arise from credit purchases. A credit purchase normally credits trade payables and debits the relevant purchase or asset account, plus any recoverable input tax. Later payment reduces the liability. Reconcile the supplier's account to supporting statements and investigate any unmatched invoices or credits. Supplier payments reduce both cash and the outstanding liability, subject to any applicable discount.

Also called: Amount payable