Accounts payable is the process of tracking, managing and settling all financial obligations owed by a business. This involves invoicing customers for goods or services provided, recording payments received, tracking any outstanding vendor payments, and issuing payments in an efficient and timely manner. The process starts with the purchase of goods or services, followed by the receipt of an invoice from the vendor. This invoice is then reviewed and approved for payment by the accounts payable department. The approved invoice is then processed and a payment is issued to the vendor. After payment is received, the accounts payable department records the payment and updates the accounts payable ledger to reflect the transaction. The process is then repeated until all outstanding vendor payments have been settled.