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. Check Core Help Center for details.