Aqid ERPMeaning
Accounts payable (الذمم الدائنة) is the total of supplier bills booked and unpaid. It is a current liability and a control account over the supplier sub-ledger. A bill enters payables when it is received and matched: to the purchase order for price and quantity, and to the delivery note for what arrived. The payment run then settles the bills that are due, by bank transfer to each supplier's IBAN, and a payment voucher records the approval.
Input VAT on a supplier's bill is reclaimed in the period of the bill, provided it is a tax invoice in the company's name from a registered supplier, which is why the VAT number is verified at onboarding. Payments to non-resident suppliers may carry withholding tax. Payable days, the average time taken to pay, is the mirror of receivable days and the other half of working capital.
Also called: payables · creditors · AP · الذمم الدائنة
Example
Gulf Supplies' bill for shelving, 11,385.00 including 1,485.00 VAT, is matched to PO-2026-0112 and delivery note DN-0077, booked to payables, and paid on its due date by transfer. The 1,485.00 is deducted in the October VAT return.