Core uses the A/P accounts to track the money your company owes to others. You can
perform A/P related tasks in Core including creating accounts, paying vendor bills,
writing checks, making entries in bank registers, reconciling accounts, making journal
entries, etc. When you pay a vendor bill in full, the related expense entries, if
any, are marked as paid and this transaction is recorded in the A/P register. You
can also write checks to pay off general bills or reimburse your employees.
To use the Accounts Payable features, you need to create an A/P account (such as
a bank or credit card account) that automatically adds to your Chart of Accounts.
When a vendor bill is entered, the expense or other specified account is debited
while the A/P account is credited (A/P amount is increased). Furthermore, when vendor
bills are paid, the A/P account is debited (A/P amount is decreased) and the Bank
Account is credited. If you credit an A/P account, it increases the A/P amount, while
as when you debit it, it decreases the A/P amount. You can keep track of your accounts
payable using the A/P reports and registers.