In this portion of the book, you will find information regarding accounts payable (AP) at Indiana University.

This portion of the book provides an overview of AP and helpful documents related to accounts payable at Indiana University. Accounts payable refers to the obligations due to suppliers or vendors after an organization has received goods or services but has not yet processed payment for them. These obligations are typically recorded at face value, as the time between purchase and payment is relatively short, making them a current liability on the balance sheet.

Understanding accounts payable is crucial for effective financial management as it allows for accurate tracking of financial obligations, proper cash flow management, and helps IU maintain a positive relationship with suppliers and vendors. By grasping the concept of accounts payable, IU staff can ensure timely payments and uphold financial stability within the institution.