Accounts payable
Accounts payable is the money your business owes suppliers for goods or services received on credit.
Accounts payable, or payables, is the total you owe your suppliers. It is the other side of udhaar: goods you have received but not yet paid for. Most Pakistani shops, restaurants and distributors buy on some credit, so payables are always there.
Example
| Supplier | Amount owed | Due |
|---|---|---|
| Rice supplier | Rs 180,000 | 15th |
| Oil distributor | Rs 75,000 | 30th |
| Packaging supplier | Rs 22,000 | 30th |
| Total payables | Rs 277,000 |
A restaurant owner sees Rs 277,000 owed. Rs 180,000 is due by the 15th and Rs 97,000 by the 30th. If the first two weeks bring in less cash than expected, he knows today that he should speak to the rice supplier before the 15th.
A short call before the due date, asking for a week more on part of the amount, usually keeps the relationship intact. A missed payment with no call does the opposite.
Why it matters
- Paying on time keeps good rates and keeps suppliers willing to give credit.
- Paying too early can leave you short for rent or salaries.
- Knowing payables and receivables together shows whether cash will be tight.
How software handles it
Payables are the sum of your supplier ledgers. Taajir records each purchase and each payment out against the supplier, so the balance is always current. ArfaPOS has supplier ledgers and balances for restaurants on its Growth and Business plans. Returns to a supplier are usually recorded with a debit note.
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