FinTech Glossary

Meaning

Accounts payable (AP) is the amount a business owes to its suppliers or vendors for goods and services purchased on credit. It is recorded as a current liability on the balance sheet until the invoice is paid.

Business Context

For Indian businesses, AP directly affects working capital, vendor relationships, and cash flow planning. Delayed AP payments can strain supplier trust and even trigger penalties under the MSME Samadhaan scheme, which mandates payments to micro and small enterprises within 45 days.

How It is Managed

AP management typically involves invoice receipt and verification, three-way matching with purchase orders and goods receipt notes, approval workflows, and scheduled payment runs. Efficient AP processes reduce duplicate payments, missed early-payment discounts, and reconciliation errors.

EnKash Relevance

EnKash helps finance teams automate the AP cycle end-to-end, from invoice capture to approval routing and vendor payouts, giving businesses real-time visibility into outstanding payables and helping them avoid late-payment penalties.