CreditorAccount

CreditorAccount is a ledger record used to track obligations to a creditor or supplier in accounting and financial software. It can reside as a general ledger control account within the accounts payable function or as a subledger account for each supplier in ERP systems. Its main purpose is to aggregate and manage amounts owed to creditors, supporting accurate liability reporting and cash-flow planning.

A CreditorAccount is typically linked to a creditor or vendor master record that stores identifying details, payment terms, tax information, and bank data. The account records transactions such as supplier invoices, credit memos, and payments. In double-entry bookkeeping, posting an invoice increases the liability balance of the creditor account, while recording a payment decreases it. The balance reflects the outstanding amount owed, and open items represent individual invoices or credits awaiting settlement. Aging analyses group open items by due date to reveal overdue amounts.

In practice, CreditorAccounts are used throughout the procure-to-pay cycle: purchase orders and goods receipts feed invoices, payments are matched to open items, and reconciliations align the subledger with the general ledger. Data in a CreditorAccount informs cash management, supplier negotiations, and financial reporting. Security, audit trails, and regular reconciliation help maintain accuracy.

See also: accounts payable, vendor master data, subledger, general ledger, aging report.