Accounts Payable (AP) is the amount of money owed by a business to its suppliers, vendors and creditors. Think of it as an IOU account; when you make a purchase, what comes back in return is an invoice and a promise to pay in the future. When that payment is made on time, AP Type of Account keeps track of what has been spent and how much is left to pay. In short, it’s a way for businesses to know their financial obligations while they continue focus on growth and success.