Set up accounts payable

Accounts payable is a liability account that records amounts the business owes to suppliers. In Accountly, this is a control account, meaning it is built into the software and is made up of subaccounts for suppliers defined in the Suppliers tab. Normally, it should not be created manually in the chart of accounts.

CAUTION
If Accounts payable is created manually in the chart of accounts, many built-in functions will be lost. Accountly will not be able to associate purchase invoices with specific suppliers. And it will not be able to apply advances, deposits, or overpayments paid to suppliers to purchase invoices.

Activate Accounts payable

Accounts payable will automatically appear in the Balance Sheet and chart of accounts when the first supplier has been created:

Set up starting balances

If making a transition to Accountly from a previous accounting system, follow Set starting balances for suppliers to set up starting balances for suppliers.