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Accounts Payable (AP) bookkeeping separates vendor liabilities from payments, supporting accurate reconciliation, auditability, and financial clarity in Accounting Systems.
Pleo supports Accounts Payable bookkeeping for Export Items that require tracking vendor liabilities independently from payments, unlike Journal Entry bookkeeping where expenses are recorded directly in the general ledger. Each expense may generate:
  • Invoice entry – represents the liability owed to a vendor
  • Payment entry – represents the actual payment
This method enables:
  • Accurate reconciliation of vendor invoices and payments
  • Clear tracking of refunds, chargebacks, and credit notes
  • Handling of split expenses with multiple categories or tax treatments
  • Vendor-specific or single Accounts Payable GL account assignment
By understanding these principles, developers can anticipate how exported expenses will appear in the Accounting System, and how AP bookkeeping interacts with other export capabilities.

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Core Principles

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Invoice vs Payment Separation

  • Each expense produces an invoice entry representing the vendor liability, and a payment entry representing the actual payment.
  • Invoice and payment entries may be recorded independently and at different times.
  • Many Accounting Systems provide Invoice Objects (e.g., Purchase Invoices in Business Central) to record liabilities separately from journal entries.
  • Pleo exports create invoice entries in these objects, while payment entries may be applied by:
    • Marking the invoice object as paid, and/or
    • Recording a payment in a journal, depending on the Accounting System’s capabilities.

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Vendor Assignment

  • Each expense must be linked to a vendor, which can be:
    • Supplier – external company providing goods or services
    • Employee – when an employee covers an expense out-of-pocket; the reimbursement is treated as the payment entry
  • Correct vendor assignment ensures invoice and payment entries are recorded accurately.

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Accounts Payable GL Account

  • All vendor liabilities are tracked through a dedicated Accounts Payable account.
  • This account can be configured as:
    • Vendor-specific, or
    • A single account for all vendors, depending on the Accounting System.

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Refunds and Chargebacks

  • Refunds and chargebacks are recorded as credit notes, acting as the inverse of invoices.
  • Credit notes allow separate tracking of returned funds versus original invoices.
  • Pleo supports exporting credit notes for applicable expenses if the Accounting System provides this functionality.

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Split Expenses

  • Expenses with multiple categories or tax treatments are recorded as separate lines on the invoice.
  • Payments may still be recorded as a single entry reflecting the total amount.
  • This ensures both detailed accounting records and accurate reconciliation.

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Relationship to Other Export Concepts

Accounts Payable bookkeeping interacts with other export capabilities during per-item processing:
  • Accounts Mapping – determines which GL accounts are debited and credited for invoices, payments, and credit notes
  • Data Mapping – ensures amounts, dates, dimensions, identifiers, and VAT/tax information are recorded correctly
  • Attachment Handling – links receipts and supporting documents to invoice, payment, or credit note entries
  • Accounting Periods – assigns entries to the correct accounting period
  • Posting Behaviour – determines whether entries are created as drafts or finalised
Understanding these relationships helps developers anticipate how AP bookkeeping integrates into the Export Lifecycle.

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What Comes Next?

To understand how AP bookkeeping is exported in practice, see: For alternative bookkeeping methods, see: