payable

Payable is an adjective used in finance and accounting to denote an obligation to pay money. The term is commonly seen in reference to money that a company must pay someone else, such as accounts payable, which represents short-term liabilities arising from purchasing goods or services on credit. Payable also appears in other contexts, including taxes payable, wages payable, interest payable, and notes payable.

Payables are typically categorized as current liabilities if they are due within one year, with long-term payables extending beyond that period. They can be further divided into trade payables, which arise from ordinary business purchases, and non-trade payables, such as tax payable, salary payable, or interest payable.

Recognition and measurement follow standard accounting practice. A payable is recognized when the entity becomes obligated to make future payments as a result of past events. Initial recognition is usually at the fair value of the consideration received, often the invoice amount. Subsequent measurement is generally at cost or amortized cost for longer-term or interest-bearing payables, with interest expense recognized as it accrues. Under applicable accounting frameworks, financial liabilities including payables may be subject to assessments for credit risk or impairment.

In practice, the term also appears in contractual language, such as a price or amount payable on delivery. Effective management of payables—often called payables management—involves negotiating favorable payment terms, monitoring aging, and ensuring timely settlements to maintain liquidity and supplier relationships.