Accrued Payable in Accounts Payable
A payable is transformed into an accrued payable when the supplier does not invoice the organization for the goods or services that have been received. The organization recognizes the expense in the current period, even though cash has not yet been paid out. An accrued payable is recorded in the Accounts Payable account in the ledger. An accrued payable represents a legal obligation of the organization, and it is classified as a current liability on the balance sheet. The organization is obligated to pay the supplier for the goods or services that have been received, even though an invoice has not yet been received.
