What is A/P or Accounts Payable Aging?
A periodic report that categorizes a company’s accounts payable according to the length of time an unpaid invoice has been outstanding. Similar to accounts receivable aging, it is a critical management tool as well as an analytic tool that helps determine the financial health of a company by its ability to pay its bills on time. Credit memos and partially paid invoices will also be listed on the A/P Aging.
RELATED TERMS
- Generally Accepted Accounting Principles (GAAP)
Generally Accepted Accounting Principles (GAAP) represents the standard account practice guidelines or the common way financial accounting is reported and recorded for a company (public or private), not-for-profit organization, or state or local government.
- Accounts Receivable (A/R)
Accounts Receivable are monies owed to a company by their customers (another business, a government entity or individual) for goods or services sold on terms. Accounts receivable are a Current Asset on a company’s Balance Sheet. In most businesses, the…
- Accounts Payable Financing
Accounts Payable Financing allows a company to pay its supplier immediately (cash on delivery or COD) without having to use their own working capital. This is also known as trade credit financing. This type of financing gives the company a…