AP Glossary
Essential accounts payable terms and definitions for finance professionals. From 3-way matching to zero-based budgeting.
Featured Terms
Priority Definition
Accounts Payable (AP)
Money a company owes to suppliers for goods and services received but not yet paid for.
Priority Definition
3-Way Matching
The process of matching a vendor invoice to the corresponding purchase order and receiving document before approving payment.
Priority Definition
Invoice Processing
The workflow of receiving, verifying, approving, and paying vendor invoices.
Priority Definition
AP Automation
Technology that automates accounts payable processes including invoice capture, matching, approval, and payment.
Priority Definition
Lien Waiver
A legal document where a contractor or supplier waives their right to file a mechanics lien upon receiving payment.
Priority Definition
Fund Accounting
An accounting system that segregates resources into funds based on their source and intended purpose.
Accounts Payable (AP)
Money a company owes to suppliers for goods and services received but not yet paid for.
Learn moreAP Automation
Technology that automates accounts payable processes including invoice capture, matching, approval, and payment.
Learn moreAging Report
A report showing outstanding invoices categorized by how long they have been unpaid.
Learn moreAI Agent
An autonomous AI system that can observe, decide, and take actions to complete AP tasks without continuous human guidance.
Learn more3-Way Matching
The process of matching a vendor invoice to the corresponding purchase order and receiving document before approving payment.
Learn more2-Way Matching
Comparing an invoice to its corresponding purchase order before approving payment — a fundamental accounts payable control used for services and non-inventory purchases.
Learn moreSOX Compliance
Adhering to the Sarbanes-Oxley Act requirements for financial controls and documentation.
Learn moreStraight-Through Processing (STP)
Invoices that are processed from receipt to payment-ready without any manual intervention.
Learn moreSingle Audit
A federally required audit for organizations that spend $750,000 or more in federal awards in a fiscal year.
Learn moreBrowse by Category
Core
18 termsProcesses
5 termsMetrics
1 termsCompliance
11 termsTechnology
3 termsConstruction
10 termsNonprofit
11 termsAI & Automation
7 termsHave questions about AP automation?
Our team can explain how these concepts apply to your specific situation.