The Complete AP Directory
& Glossary

A chronological record of all changes and transactions in a system, providing accountability and traceability for compliance and fraud detection.

Application Programming Interface—a set of protocols enabling different software systems to communicate and share data.

An electronic funds transfer through the Automated Clearing House network, used for batch processing of credits and debits between bank accounts.

An electronic payment processed through the Automated Clearing House network, offering a cost-effective alternative to checks and wire transfers.

An accounting entry recognizing expenses or revenues before cash changes hands, essential for accurate period-end financial reporting.

The money owed to a company by its customers for goods or services delivered—the counterpart to accounts payable on the other side of transactions.

The structured process of routing invoices through designated approvers based on rules like amount thresholds, departments, or GL codes.

Technology solutions that automate accounts payable processes including invoice capture, matching, approval workflows, and payment execution.

The department or process responsible for managing and paying outstanding invoices to vendors and suppliers.

The process of matching internal payment records against bank statements to ensure accuracy and identify discrepancies.

A traditional paper-based payment method that remains common in B2B transactions despite higher costs and fraud risks compared to electronic alternatives.

A document issued to reduce the amount owed, used for returns, overcharges, or pricing adjustments—also known as a credit memo.

A legal document used in international trade that serves as a customs declaration and proof of sale between exporter and importer.

A document issued by a vendor to reduce the amount owed, typically for returns, overcharges, or pricing corrections.

The automated process of identifying and pulling key fields from invoices using OCR and AI technology for touchless processing.

A document that increases the amount owed, used for additional charges, chargebacks, or adjustments to original invoices.

An erroneous payment made twice for the same invoice, often caused by processing errors, vendor resubmissions, or poor internal controls.

A financial metric (DPO) measuring the average number of days a company takes to pay its suppliers and vendors.

The standardized electronic exchange of business documents between organizations, enabling automated invoice and order processing without manual data entry.

Connecting accounts payable systems with enterprise resource planning software for seamless data flow and process automation.

Electronic invoicing—the exchange of invoice documents in structured digital formats directly between systems.

Electronic Data Interchange—a standardized format for exchanging business documents electronically between trading partners.

Digital payment methods that transfer funds without physical checks, including ACH, wire transfers, virtual cards, and real-time payments.

Enterprise Resource Planning software that integrates core business processes including finance, HR, and supply chain into a unified system.

A billing document from carriers for shipping and transportation services, often containing complex charges requiring specialized audit and validation.

A General Ledger code used to categorize and track expenses in accounting, assigning invoices to specific accounts for financial reporting.

Policies and procedures designed to ensure the integrity of financial reporting, operational efficiency, and regulatory compliance.

AI-powered technology combining OCR, NLP, and machine learning to automatically extract and process invoice data.

The process of assigning GL codes, cost centers, and other accounting dimensions to invoice line items for proper expense categorization.

The verification process ensuring invoice data is accurate, complete, and complies with business rules before payment authorization.

The process of receiving and digitizing invoices from various channels including email, vendor portals, mail, and EDI for processing.

An invoice for goods or services exchanged between different legal entities within the same corporate group, requiring elimination during consolidation.

The process of comparing invoice data against purchase orders and receipts to verify accuracy before authorizing payment.

The complete workflow of receiving, validating, approving, and paying vendor invoices—from capture to reconciliation.

A commercial document issued by a seller to a buyer requesting payment for goods or services provided, detailing quantities, prices, and payment terms.

AI technology that enables systems to learn from data and improve invoice processing accuracy over time without explicit programming.

A common payment term requiring full invoice payment within 30 days of the invoice date or receipt of goods.

Optical Character Recognition technology that converts images of text into machine-readable data for invoice capture and processing.

The end-to-end workflow of executing vendor payments, including batching, approval, transmission, and settlement across various payment methods.

A preliminary bill sent before goods are delivered, providing a good-faith estimate of costs and used for customs or advance payment purposes.

The end-to-end business process covering all steps from requisitioning goods to making payment, also known as P2P or purchase-to-pay.

The conditions under which a vendor expects payment, including due dates, early payment discounts, and late payment penalties.

A formal document issued by a buyer to a seller authorizing a purchase transaction, specifying items, quantities, prices, and delivery terms.

Robotic Process Automation uses software bots to automate repetitive, rule-based tasks in accounts payable workflows.

The process of comparing and matching records between systems to ensure accuracy, including bank reconciliation and vendor statement reconciliation.

Instant payment systems that settle funds within seconds, available 24/7/365, enabling immediate fund availability for recipients.

An invoice that repeats at regular intervals for ongoing services or subscriptions, often automated for efficiency.

An internal control requiring different people to handle different parts of a transaction to prevent fraud and errors.

Adherence to the Sarbanes-Oxley Act requiring internal controls, audit trails, and financial reporting accuracy.

An expedited ACH processing option that enables same-business-day settlement, faster than standard ACH but slower than real-time payments.

End-to-end automated invoice processing where invoices flow from receipt to payment without manual intervention.

A business entity that provides goods, raw materials, or components to another company, typically as part of a manufacturing or production supply chain.

Invoice processing that requires zero human intervention from receipt to payment, achieved through automation and AI.

A verification process that compares two documents—the purchase order and vendor invoice—to confirm accuracy before payment authorization.

An accounts payable control process that compares three documents—the purchase order, goods receipt, and vendor invoice—to verify accuracy before authorizing payment.

A recurring bill for essential services like electricity, gas, water, or telecommunications, typically featuring usage-based charges.

The process of registering, validating, and setting up new vendors in the accounts payable system, including collecting tax forms and banking information.

A digital payment method using single-use card numbers for B2B payments, offering security benefits and potential rebate revenue.

A bill received from a supplier requesting payment for goods or services, representing the primary input document for accounts payable processing.

The process of managing vendor relationships including onboarding, performance monitoring, risk assessment, and master data maintenance.

An external party that sells goods or services to your organization, encompassing suppliers, service providers, contractors, and any entity you pay for business needs.

An electronic funds transfer method for immediate, irrevocable payments, commonly used for high-value or time-sensitive transactions.