Technical definition
Short-term obligations to suppliers for goods or services received on credit.
How it works
Receiving goods or services on supplier credit creates an asset or expense and a payable. Paying the invoice later reduces cash and the payable; it normally does not create a second expense.
Everyday example
Office supplies of $600 on credit: debit Supplies 600; credit Accounts Payable 600.
Common pitfall
A payable is not the same as a provision or a bank loan; origin and uncertainty differ.