Let’s begin by defining what is meant by accounts payable transactions. Accounts payable transactions are basically any payments that a business makes to their suppliers, vendors, or anyone else who has previously provided goods or services to the business.

What is the official business definition of Accounts Payable Transactions? It is a group of related activities that result in a company receiving goods, services, or funds from its suppliers and making payments for those items. The main purpose of accounts payable transactions is to get the right amount of assets and liabilities on the company’s balance sheet at the right time. In other words, this is the process of “paying off” the debts that have been incurred during a fiscal year.