A/P or AP

AP is an abbreviation for “accounts payable”.

It is the money that companies owe in the short term and is recorded under current liabilities. In general, companies want to pay debts off as far in the future as they can (provided there is no financing charges) and get paid right away.

Accounts payable is essentially the opposite of accounts receivable, the money that is owed to the company.

Accounts payable includes things like bills for materials and services, payroll costs, short-term loans, and business income taxes.

Look for extended information in our full Accounts Payable term.