Payables

Payable Accounts function in a similar way to Receivable Accounts except that the transaction flow is managed for money being paid out by the business for goods and services that are purchased.

Payable Accounts include Inventory Suppliers as well as Companies the business purchases services from such as a phone company, utilities, a Lawyer or Accountant and computer leasing.

Each Payable Account payment transaction made through the company must have related General Ledger Accounts established. The type of General Ledger Account created depends upon the nature of the purchase and where the business would like to account for the purchase.