Accounts payable
The function and ledger that tracks what a business owes to suppliers — vendor invoices, payments, and credit terms.
Accounts payable (AP) is the function and the ledger that tracks what a business owes to its suppliers. In Business Central and Dynamics 365 Finance, AP transactions are created by posted vendor invoices and credit memos — generated either from purchase orders (matched to receipts) or entered standalone — and settled by payment journals that produce bank files. Standard AP features include payment terms, payment discounts, partial payments, ageing reports, payment proposals, three-way matching, and vendor statements. AP entries post simultaneously to the vendor ledger and the general ledger, with currency revaluation handled by period-end routines.