Vocabulary Words Every Accounts Payable Clerk Should Know

Invoice

Definition: A document that itemizes and records a transaction between a buyer and a seller.

• The company sent an invoice for the services provided.
• She checked the invoice for any errors before paying.
• An invoice is usually due within 30 days.

Invoice in a sentence

Payment

Definition: Money given for goods or services.

• I made my payment for the concert tickets.
• The payment is due at the end of the month.
• We can process your payment online.

Payment in a sentence

Bill

Definition: a statement of money owed

• He received a bill for his phone service.
• The bill was higher than expected.
• She paid the bill at the restaurant.

Bill in a sentence

Money

Definition: Paper or coins used to buy things.

• I need money to buy a new book.
• He saved his money for a new bike.
• We use money to pay for food.

Money in a sentence

Cost

Definition: The amount of money needed to buy something.

• The cost of the book is ten dollars.
• She checked the cost of the concert tickets.
• It may cost more to travel during the holidays.

Cost in a sentence

Total

Definition: the complete amount or sum

• The total cost of the items is $50.
• She calculated the total for the bill.
• Understanding total helps in math.

Total in a sentence

Due

Definition: Expected or owed at a certain time; also refers to a requirement.

• The assignment is due on Friday.
• He was due for a check-up at the doctor.
• Understanding due dates helps with time management.

Due in a sentence

Check

Definition: To look at something to verify its accuracy; a written order for payment.

• Please check your answers before submitting.
• He wrote a check to pay for the groceries.
• She will check the schedule for the meeting.

Check in a sentence

Receipt

Definition: A document acknowledging that something has been received, especially in transactions.

• He kept the receipt for his new shoes.
• She asked for a receipt after buying the groceries.
• Understanding receipts is important for budgeting.

Receipt in a sentence

Account

Definition: A record of financial transactions; a personal description of events.

• She opened an account at the bank.
• He shared his account of what happened.
• The account showed all his expenses.

Account in a sentence

Vendor

Definition: a person or company that sells things

• The vendor at the market sells fresh fruit.
• We bought snacks from a street vendor.
• Each vendor had unique items for sale.

Vendor in a sentence

Purchase

Definition: to buy something

• She plans to purchase a new laptop.
• He made a purchase at the store.
• The purchase of the tickets was easy online.

Purchase in a sentence

Order

Definition: To request something to be made, delivered, or done.

• I will order a pizza for dinner.
• Please order the books from the library.
• We need to order new supplies for the classroom.

Order in a sentence

Expense

Definition: The cost incurred in the course of doing business or personal activities.

• She tracked her monthly expenses carefully.
• The expense report was submitted for approval.
• Understanding expense management is crucial for budgeting.

Expense in a sentence

Credit

Definition: Recognition or acknowledgment, often for work done.

• She received credit for her hard work.
• You need to give credit to the author.
• He got credit for his contribution to the project.

Credit in a sentence

Debit

Definition: An entry recording an amount owed or payment made, often in a bank account.

• The debit from my account was for groceries.
• She checked her bank statement for recent debits.
• Understanding debits is important for managing money.

Debit in a sentence

Record

Definition: To capture or store information; a written account of something.

• I will record the lecture for later.
• They set a new record in the race.
• She likes to record her thoughts in a journal.

Record in a sentence

File

Definition: A collection of documents or data stored together.

• I need to organize my files on the computer.
• He saved the file in a new folder.
• Please check the file for the latest updates.

File in a sentence

Number

Definition: A mathematical value used for counting or measuring.

• My favorite number is seven.
• There are many numbers in a phone book.
• We use numbers in everyday life, like for telling the time.

Number in a sentence

Date

Definition: A specific day of the month or year.

• What date is your birthday?
• We have a meeting scheduled for that date.
• She wrote the date down in her planner.

Date in a sentence

Transaction

Definition: an instance of buying or selling something

• The transaction was completed online.
• He received a receipt for the transaction.
• They tracked the transaction in their records.

Transaction in a sentence

Due Date

Definition: The specific date by which something must be completed.

• The due date for the project is next week.
• She marked the due date on her calendar.
• Understanding due dates is important for planning.

Due Date in a sentence

Budget

Definition: A plan for managing money; an estimate of income and expenses.

• I need to create a budget for my monthly spending.
• We saved money by sticking to our budget.
• The school has a budget for supplies and activities.

Budget in a sentence

Amount

Definition: A quantity of something, especially when referring to money or measurements.

• The amount of sugar in the recipe is two cups.
• He saved a large amount of money for his trip.
• Understanding amounts helps in budgeting and measurements.

Amount in a sentence

Approval

Definition: The belief that someone or something is good or acceptable; permission.

• I need my parent's approval to go to the party.
• Her project received approval from the teacher.
• The approval process can take a long time.

Approval in a sentence

Statement

Definition: A clear expression of something in speech or writing.

• The teacher asked for a statement about the project.
• He made a statement about his favorite book.
• She wrote a statement to explain her opinion.

Statement in a sentence

Error

Definition: A mistake or inaccuracy.

• I made an error on my math test.
• He found an error in the report and fixed it.
• It's okay to make an error; we learn from them.

Error in a sentence

Balance

Definition: A state of stability; an equal distribution of weight or amount.

• It's important to maintain a balance between work and play.
• She tries to balance her studies and hobbies.
• The scale showed a perfect balance.

Balance in a sentence

Purchase Order

Definition: A document that confirms a purchase.

• The company sent a purchase order for supplies.
• I received a purchase order for the new equipment.
• A purchase order helps keep track of orders.

Purchase Order in a sentence

Reconciliation

Definition: The process of restoring friendly relations or resolving differences.

• They sought reconciliation after their argument.
• Reconciliation is important for maintaining friendships.
• The reconciliation of their views led to a better understanding.

Reconciliation in a sentence

Audit

Definition: An official examination of accounts or financial records.

• The school will conduct an audit of its budget.
• An audit helps ensure that everything is accurate.
• They hired a company to perform the audit for transparency.

Audit in a sentence

Terms

Definition: The specific conditions or rules of an agreement.

• The terms of the contract must be followed.
• She agreed to the terms before signing.
• Understanding terms helps in negotiations.

Terms in a sentence

Cash Flow

Definition: The movement of money in and out of a business or personal account.

• Monitoring cash flow is important for financial health.
• He created a cash flow plan for his new business.
• Understanding cash flow helps in budgeting and planning.

Cash Flow in a sentence

Ledger

Definition: A book or digital record used for keeping financial accounts.

• The accountant keeps a ledger of all transactions.
• We reviewed the ledger to find the expenses.
• The ledger helps track income and spending.

Ledger in a sentence

Accrual

Definition: The accumulation of something over time.

• Accrual of interest can increase savings.
• The accountant explained the accrual process.
• Accrual accounting reflects financial realities.

Accrual in a sentence

Liability

Definition: the state of being responsible for something, especially in law

• He accepted liability for the accident.
• The company has a liability to its employees.
• Understanding liability is important in business.

Liability in a sentence

Asset

Definition: Something valuable owned by a person or company.

• The house is their biggest asset.
• Her skills are a great asset to the team.
• Investing in education is an important asset.

Asset in a sentence

Invoice Processing

Definition: The management of bills or requests for payment.

• They streamlined their invoice processing to save time.
• Efficient invoice processing is crucial for cash flow.
• She learned about invoice processing in her job.

Remittance

Definition: A sum of money sent as payment or support.

• She sent a remittance to her family overseas.
• The remittance arrived just in time for the holidays.
• He relies on monthly remittances from his job.

Remittance in a sentence

Discount

Definition: A reduction in price.

• The store is offering a discount on shoes.
• I love to shop during sales for discounts.
• You can get a discount if you buy in bulk.

Discount in a sentence

Procurement

Definition: The process of acquiring goods or services, often for business purposes.

• They handle procurement for the company.
• Effective procurement can save money.
• She learned about procurement strategies in class.

Procurement in a sentence

Fiscal

Definition: Related to government revenue, spending, and financial matters.

• The government announced a new fiscal policy.
• Fiscal responsibility is important for a healthy economy.
• She studied fiscal management in her finance course.

Fiscal in a sentence

Accounting

Definition: The process of recording and analyzing financial transactions.

• He studies accounting to understand business finances.
• Accounting is important for keeping track of money.
• She works in accounting for a large corporation.

Accounting in a sentence

Compliance

Definition: Following rules or standards.

• The company is in compliance with safety regulations.
• They ensured compliance with the new laws.
• She checked for compliance with the guidelines.

Compliance in a sentence

Expenditure

Definition: the amount of money spent

• The expenditure for the trip was higher than expected.
• She tracked her monthly expenditure carefully.
• Understanding expenditure helps in financial planning.

Expenditure in a sentence

Disbursement

Definition: The payment or distribution of money.

• The disbursement of funds was delayed due to paperwork.
• He received the disbursement for his scholarship.
• Tracking disbursements is important for budget management.

Disbursement in a sentence

Payable

Definition: an amount that needs to be paid

• The invoice shows the total amount payable by the end of the month.
• They need to keep track of all payable accounts.
• She checked which bills were payable this week.

Payable in a sentence

Receivable

Definition: An amount of money owed to a company or individual.

• The company has many receivables from clients.
• They monitor their receivable accounts closely.
• Managing receivables is essential for cash flow.

Receivable in a sentence

Allocation

Definition: The process of distributing resources or duties for a specific purpose.

• The allocation of funds will help improve the library.
• They discussed the allocation of tasks among team members.
• Understanding allocation is important for project management.

Allocation in a sentence

Depreciation

Definition: the decrease in value of an asset over time

• The car's depreciation means it's worth less than when we bought it.
• Understanding depreciation helps in calculating taxes.
• He learned about depreciation in his finance class.

Depreciation in a sentence

Variance

Definition: The difference between what is expected and what actually occurs.

• The variance in test scores surprised the teacher.
• Understanding variance can help improve future performance.
• The financial report showed a variance in expenses.

Variance in a sentence

Documentation

Definition: The act of providing written evidence or records; materials that provide information.

• Proper documentation is important for legal processes.
• She prepared the documentation for the project.
• The documentation helped clarify the procedures.

Documentation in a sentence

Payment Terms

Definition: the conditions under which payment is to be made

• The payment terms were clearly stated in the contract.
• She negotiated the payment terms with the supplier.
• Understanding payment terms is crucial in business agreements.

Payment Terms in a sentence

Dispute

Definition: A disagreement or argument about something.

• They had a dispute over the game rules.
• The dispute was resolved after a discussion.
• It's important to handle a dispute calmly.

Dispute in a sentence

Due Diligence

Definition: The careful review and consideration of important information.

• Due diligence is necessary before making big decisions.
• He conducted due diligence before investing in the company.
• Performing due diligence helps prevent mistakes.

Tariffs

Definition: Taxes imposed on imported or exported goods.

• Tariffs can affect the prices of products in a country.
• The government announced new tariffs on foreign goods.
• Understanding tariffs is important for international trade.

Amortization

Definition: The process of gradually paying off a debt over time.

• Amortization schedules help manage loan payments.
• He learned about amortization in finance class.
• Understanding amortization is important for budgeting.

Amortization in a sentence

Balance Sheet

Definition: a financial statement showing assets, liabilities, and equity

• The accountant prepared the balance sheet for the company.
• A balance sheet helps assess financial health.
• They reviewed the balance sheet at the meeting.

Balance Sheet in a sentence

Creditor

Definition: a person or organization to whom money is owed

• The bank is the creditor for the loan.
• She spoke with her creditor about payment options.
• Understanding creditor helps in financial literacy.

Creditor in a sentence

Financial Statement

Definition: A formal record of the financial activities of a business or individual.

• The financial statement showed a profit for the year.
• She reviewed the company's financial statement carefully.
• Understanding financial statements is crucial for investors.

Financial Statement in a sentence

Solvency

Definition: The ability of an individual or organization to meet its long-term financial obligations.

• The company’s solvency was assessed during the audit.
• Maintaining solvency is crucial for business success.
• He learned about solvency in his finance class.

Solvency in a sentence

Voucher

Definition: A document that provides a discount or a specific service.

• He received a voucher for a free meal.
• The store offered a voucher for future purchases.
• She used a voucher to save money on her shopping.

Voucher in a sentence

Write-off

Definition: An amount that is deducted from taxable income or a debt that will not be paid.

• The company had to declare a write-off for the lost inventory.
• He claimed the expenses as a write-off on his taxes.
• The bank agreed to a write-off after the loan default.