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
AP Automation
Technology that automates accounts payable processes including invoice capture, matching, approval, and payment.
Priority Definition
Invoice Approval Workflow
The structured routing of invoices to designated approvers based on rules before payment is authorized.
Priority Definition
Payment Run
A scheduled batch process where approved invoices are grouped and payments are issued to vendors.
Priority Definition
Job Costing
Tracking all costs associated with a specific construction project, job, or contract.
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
Retention / Retainage
A percentage of payment withheld from each progress payment until project completion to ensure satisfactory work.
Priority Definition
Fund Accounting
An accounting system that segregates resources into funds based on their source and intended purpose.
Priority Definition
Segregation of Duties (SoD)
An internal control that distributes critical financial tasks among multiple people to prevent fraud and errors.
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 moreAIA Billing
A standardized billing format using AIA G702/G703 forms common in construction for progress payments.
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 morePayment Run
A scheduled batch process where approved invoices are grouped and payments are issued to vendors.
Learn moreProgress Billing
Invoicing based on the percentage of work completed rather than upon final delivery.
Learn morePay-When-Paid
A contract clause where the general contractor pays subcontractors only after receiving payment from the owner.
Learn moreChange Order
A formal modification to a construction contract that changes the scope, cost, or timeline of work.
Learn moreCommitted Cost
The total financial obligation on a construction project including contracts, purchase orders, and change orders.
Learn moreCost Code
A standardized numbering system used to categorize and track construction costs by type of work.
Learn moreChurch Bookkeeping
The practice of recording and managing financial transactions for churches, including tithes, offerings, designated funds, and ministry expenses.
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?
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