Account Payable System Definition
An account payable system is a computerized method of managing and tracking invoices and payments. The system can be used to manage vendor invoices, customer invoices, or both. The system typically includes a database of vendors and customers, as well as their contact information, invoice history, and payment history.
The account payable system can be used to generate reports on outstanding invoices, payments due, and payments made. The system can also be used to track discounts taken by vendors, early payment discounts, and late payment penalties.
