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Beginner’s Guide to Accounts Payable Excel Template

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The accounting payable Excel template helps businesses that carry out their bookkeeping in MS Excel keep track of payments they need to make to vendors or suppliers.

This is crucial as the business might make different purchases for items in inventory, equipment, or supply. Moreover, the payments are often made in installments or monthly to these vendors or suppliers. Without proper tracking of the accounts payable, keeping track of these payments can become challenging.

To streamline your business processes, you can download the accounts payable Excel template when you prepare an accounts payable ledger. Explore these templates in this blog and learn how you can use them to track the accounts payable for multiple vendors or suppliers.

However, before that, let us understand what accounts payable is.

What is Accounts Payable?

An accounts payable sheet is a financial document that lists all the purchases a business makes in an account. Therefore, you can check all the vendors or suppliers you need to pay at a glance. The accounts payable sheet helps you plan and manage your payments for your purchases. An accounts payable document is also called an aging report, as it shows how old your debts are to the vendors or suppliers.

However, the accounts payable template is not for the vendors or suppliers you pay immediately at the time of purchase. The accounts payable ledger is for the vendors or suppliers with whom you have an account, and you pay them days or months after getting the product.

A Light on Accounts Payable Process

Accounts payable is a four-step process that begins when the invoice is generated by your vendor or supplier and is communicated to you. Let us take a look at these four steps.

  1. The supplier or the vendor produces the invoice for the product you ordered. The invoice is communicated or delivered to you.
  2. You need to match the invoice against the product ordered. If the details match, go ahead with the next step. Otherwise, contact the vendor or supplier for discrepancies, correction, replacement, or refunds.
  3. Once checked, record the invoice in the respective account for the vendor or supplier. You need to record only those vendors or suppliers you must pay later. For the vendors or suppliers you already paid off when making purchases, you don’t need to record them to account payables.
  4. Periodically revisit the accounts payable sheet and ensure you make timely payments to the vendors and suppliers based on your earlier agreement.

This four-step process shows that accounts payable play a significant role in procuring goods and services and repaying your vendors.

Getting Started with Accounts Payable Excel Template

Preparing accounts payable is important as you don’t want to hamper your business relations with clients by not paying your invoices on time.

However, it can be challenging to make the accounts payable document on Excel or spreadsheet from scratch. The accounts payable Excel template simplifies this job to a great extent. All you need to do is find a suitable template and ensure it has everything your business requires.

The accounts payable Excel template helps accountants, bookkeepers, and small business owners record their payments due in MS Excel. If you do not use MS Excel, you can also check out Google Spreadsheet Ledger.

Things an Account Payable Template for Excel or Spreadsheet Should Have

When searching for an accounts payable Excel template or spreadsheet, you need to ensure it has some crucial elements. Let us go through the essential things every account payable template should have.

  1. Something the accounts payable template must have is the name of the vendor or supplier. This makes it easy to identify who you must repay and differentiate between many vendors or suppliers.
  2. The second thing is the purchase date, which is when the vendor billed you or generated the invoices. This invoice date tells the accurate age of the payments due and the deadline before you must make the payments.
  3. The account payable template should also have a section to add the invoice number. It is a unique number that can serve as an identification number for tracking payments, reconciling accounts, and more.
  4. Next is the exact amount in the invoice for the product or services procured.
  5. Another section should be for the credit terms, guidelines, or agreements that will help you during the repayment.
  6. The due date section shows the deadline for the payments. Not all the vendors or suppliers will have a due date.
  7. The data of the payment section will contain the date when you make the payments. Moreover, you will need several columns for the payment date if you repay in installments.
  8. The balance or amount due shows the remaining amount you must pay the vendor or supplier. Using Excel formulas, you can make the section dynamic to calculate the amount left by subtracting the total payments made for an invoice from the principal amount.
  9. The last thing you need in your accounts payable Excel template is the overdue days. This is the number of days your payment is overdue if you pass the deadline for an invoice.

Download the Accounts Payable Excel Template for Free

Here, you can download the accounts payable Excel template at no cost. For tips on how to utilize the accounts payable template, head over to the next section.

Accounts Payable Excel Template

If you don’t have MS Excel and carry out your accounting and bookkeeping on Google Spreadsheets, download the accounts payable ledger for spreadsheets instead.

accounts payable ledger for spreadsheets

How to use the Accounts Payable Excel Template or Spreadsheet

This section will walk you through the steps of using an accounts payable Excel template or spreadsheet ledger. Follow these steps individually, and feel free to contact us with any queries or doubts.

  1. Firstly, download the accounts payable template for Excel or a spreadsheet from a reliable website. You can scroll up to find these templates in the last section.
  2. Save these templates to your local storage or cloud, where you conduct your accounting and bookkeeping operations.
  3. Now, open the template and click on the option to enable editing in case it is in view-only mode.
  4. Start editing or entering the company data and financial year.
  5. Once you complete the company information, you can enter the payments due for the suppliers or vendors.
  6. Enter the name of the supplier, the amount due, invoice details, date of purchase, date of payment, etc.
  7. Make a comment or review columns to enter notes that will come in handy in making the payments and collaborating if another accountant or business professional works on the sheet.
  8. Once you enter all the data, you can also sort in the way you want, for instance, based on the vendor or supplier, invoice date, due date, etc.

Tips to Sort and Edit Accounts Payable Data in Excel Template

If you do not know how to sort the data in Excel or how to remove the paid invoices, this section is for you.

Sorting the Data

Let us first see how to sort the data in the accounts payable Excel template.

  1. Select the rows that you wish to sort the data of.
  2. Now, you will see the option Data on the menu at the top. Click on Data and navigate to Sort.
  3. Now, you can choose which column you wish to sort the data of and in the order you want.
  4. Once done, click ok to apply.

Removing Invoices Paid

When you pay off the invoices, you should remove them from the accounts payable sheet to focus on the invoices left to pay. When you remove the paid invoices, remember to delete the value from the cells but not delete the rows altogether. Here is how you can do so:

  1. Select the invoice details, customer name, etc., for the invoice that has been paid off.
  2. You can use the ctrl button to select many at once.
  3. Now right-click on them, and click on the clear content option.
  4. Once done, you can sort your data and drag the cleared rows to the bottom.

Do You Need to Switch from MS Excel or Spreadsheets to Accounting Software?

The accounts payable Excel template or spreadsheet might suffice for your business requirements. However, you cannot ignore the time and effort it takes on repetitive tasks. When it comes to business, efficiency is always the key. This is why most small businesses are shifting to accounting software today.

Accounting software saves time on repetitive bookkeeping tasks and simplifies account reconciliation, repayment, paycheck distribution, and business tax preparation and filing. The accounting software does not have to be expensive. Today, many firms provide outsourced accounting services that fulfill the requirements of accounting software, in-house accountants, and cloud hosting in a single package.

Connect with our advisor to take a free trial of our accounting services. Dial +1(800) 580-5375.

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