Accounts Payable Management (AP Services) involves the oversight of all financial activities relating to creditors (people you owe money to). All related transactions are recorded in the Accounts Payable sub-ledger at the time of invoice and displayed as liabilities on your company's balance sheet Accounts Receivable Management (AR Services) involves the oversight of all financial activities relating to debtors (people who owe you money). All transactions related to accounts receivable are recorded in the Accounts Receivable sub-ledger upon creation of invoice and displayed as assets on your company's balance sheet A/P or AP. A/R or AR. Paid to whom? Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor. Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer