Increase Accounts Payable is an accounting transaction that occurs when a company purchases goods or services with an intention to pay the vendor at a later date. This transaction increases the liabilities of the purchasing company and is typically recorded with a debit to Accounts Payable and a credit to Cash. Increase Accounts Payable is commonly used for short-term purchases, such as office supplies or utility bills. To keep track of these purchases, it’s important for businesses to properly document all payment agreements in order to avoid any misunderstandings or disputes in the future. When the time comes for the vendor to be paid, the business can then use the Increase Accounts Payable transaction to accurately record their repayment.