Paid AP Invoice Journal Entry

When a company purchases goods or services on credit that needs to be paid back within a short period of time, it is known as accounts payable. Depending on the terms of the contract, some accounts may need to be paid within 30 days, while others will need to be paid within 60 or 90 days.

Determining whether any particular transaction is a debit or a credit is the difficult part. That’s where using t-accounts comes in. Accounting instructors use T accounts to teach students how to do accounting work.

After one month, you will pay back the invoice amount to the vendors. That means your liability will go down or will get debited. So below will be a general entry for Account Payable Debit.

Test your transaction in the form below and the results will be the correct debit and credit. (no data is saved in our system)

Vendor name

Vendor Name: A field to collect the name of the vendor or supplier.

Invoice Number

Invoice Number: A field to collect the unique identifier for the invoice.

Invoice Date

Invoice Date: A field to collect the date the invoice was issued.

Invoice Amount

Invoice Amount: A field to collect the total amount due on the invoice.

Payment Date

Payment Date: A field to collect the date the payment was made.

Payment Amount

Payment Amount: A field to collect the total amount paid on the invoice.

Payment Method

Payment Method: Select Payment Type.

Expense Account

Expense Account: A field to collect the account code or name for the expense account being debited.

Payment Account

Payment Account: A field to collect the account code or name for the payment account being credited.

Memo

Memo: A field to collect any additional information or notes about the transaction.