AP Glossary

Quick definitions of accounts payable terms, acronyms, and concepts. Your reference guide to AP terminology.

Three-Way Matching

Verification process comparing purchase order, receiving document, and invoice before payment approval.

Automated Clearing House. Electronic bank-to-bank payment network for direct deposits and bill payments.

Payment terms requiring full payment within 30 days of the invoice date.

Document sent with payment explaining which invoices are being paid and how to apply the payment.

Goods Received Not Invoiced. Inventory received but not yet billed by the vendor.

Expenses incurred but not yet billed. Recorded as liabilities until the actual invoice arrives.

Bank service that matches presented checks against an approved list to prevent check fraud.

Internal control dividing tasks among different people to prevent fraud and errors.

Report showing outstanding payables organized by how long they've been unpaid (current, 30, 60, 90+ days).

The point at which transactions are assigned to one accounting period versus another.

Payment terms offering 2% discount if paid within 10 days, otherwise full amount due in 30 days.

Central database of approved vendors including contact info, payment terms, and banking details.

Electronic Funds Transfer. Any transfer of money from one bank account to another via electronic systems.

IRS form reporting payments to non-employees. Required for payments over $600 to most vendors.

IRS form collecting taxpayer identification number and certification from US vendors.

Sarbanes-Oxley Act requirements for internal controls and financial reporting in public companies.

Detailed record supporting a general ledger account. AP subledger shows individual vendor balances.

Single-use credit card number generated for a specific payment, reducing fraud risk.

BillerPlus gives you a single, controlled front-door for all vendor invoices.