Accounts payable (A/P) are amounts owed
by a business to their suppliers, for goods or services they have purchased.
The general ledger account for A/P is used to record all A/P transactions. These
transactions will also be recorded in the A/P subsidiary ledger
(subledger), which
tracks the balances for each supplier.
When accounting software is used, the A/P subledger is used to
produce reports at the end of each month, showing the amounts payable to
each supplier, and the "age" of these amounts.