What is AP Automation?

Accounts payable (AP) is money that a business owes to its suppliers. The money appears on a company’s balance sheet as a liability. The AP department usually processes and reviews the transactions with the company’s suppliers and pays the outstanding invoices, and the process is lengthy and complex.

Accounts payable automation, or AP Automation, refers to accounts payable software or technology that eliminates paperwork, automates processes, and reduces invoicing costs and cycle times to optimize payments. AP Automation also mitigates operational and compliance risks.


Related Terms

What is Accounts Payable (AP)?What is Accounts Receivable (AR)?What is Acquisition Cost?What is Active External Integration?What is Added Value?