An accounts payable template is a spreadsheet for tracking the bills your business owes suppliers and when each one is due. Download the free Excel template below. Enter each vendor invoice and its terms; it calculates the due date, balance, days past due and AP aging buckets, shows a status for every bill, and calculates how much you save by taking early-payment discounts such as 2/10 net 30.
- Vendor, invoice number, invoice date, payment terms and automatic due date
- Invoice amount, amount paid and balance due
- Days past due and aging buckets: current, 1–30, 31–60, 61–90 and over 90 days
- Status for every bill: Paid, Overdue, Due within 7 days or Not yet due
- Early-payment discount % and days, with the dollar saving if you pay in time
- Totals and % of balance in each bucket, plus a filled-in example
What Is Accounts Payable?
Accounts payable (AP) is money your business owes suppliers for goods and services bought on credit. It appears as a current liability on your balance sheet. Managing it well means paying on time, avoiding late fees, keeping good supplier relationships and timing payments so you don't run short of cash. Learn more in accounts payable vs accounts receivable.
What the AP Template Tracks
| Column | How it works |
|---|---|
| Due date | Invoice date + terms in days |
| Balance due | Invoice amount − amount paid |
| Days past due and aging buckets | Overdue balances fall into 1–30, 31–60, 61–90 or over 90 days |
| Status | Paid, Overdue, Due within 7 days or Not yet due, based on the as-of date |
| Discount saving | Balance × discount % if the as-of date is still within the discount window |
How to Use the Accounts Payable Template
- Enter the as-of date (defaults to today).
- Log every supplier bill when it arrives: vendor, invoice number, invoice date, terms and amount.
- Add any early-payment discount, for example 2% and 10 days for 2/10 net 30.
- Record payments as you make them. Paid bills drop out of the aging buckets.
- Review the status column weekly. Pay overdue bills first, then bills due within 7 days, and decide whether to take each available discount.
- Feed scheduled payments into your 13-week cash flow forecast so you know you will have the cash.
Accounts Payable Example
From the template's Example sheet, as of June 30, 2026:
| Vendor | Due date | Balance | Status | Bucket | Discount saving |
|---|---|---|---|---|---|
| Laredo Valve Co. | 07/20/2026 | $18,400 | Not yet due | Current | $368 (2/10 net 30) |
| Delta Supply Co. | 06/24/2026 | $7,250 | Overdue | 1–30 | – |
| Metro Metals | 06/04/2026 | $7,900 | Overdue | 1–30 | – |
| Pacific Freight LLC | 05/18/2026 | $4,300 | Overdue | 31–60 | – |
| GaugeTech | 08/09/2026 | $3,100 | Not yet due | Current | $31 (1% discount) |
| Shenzhen Parts Ltd. | 05/09/2026 | $16,500 | Overdue | 31–60 | – |
The business owes $57,450, of which $35,950 is overdue, and can still save $399 by paying two bills within their discount windows.
Is an Early-Payment Discount Worth It?
The annualized cost of skipping a discount is:
(Discount % ÷ (100% − discount %)) × (365 ÷ (net days − discount days))
For 2/10 net 30: (2 ÷ 98) × (365 ÷ 20) ≈ 37.2% a year. If you can fund the early payment for less than that, taking the discount saves money. Supplier-side programs such as dynamic discounting work on the same principle.
AP Metrics to Watch
- Days payable outstanding (DPO): (accounts payable ÷ cost of goods sold) × days in the period. See our guide to DPO.
- Accounts payable turnover: cost of goods sold ÷ average accounts payable. See the AP turnover ratio.
- Overdue %: the share of AP past due. A rising number can damage supplier terms.
Paying suppliers too fast drains cash; paying too slowly strains relationships. Your cash conversion cycle shows how these timings combine with inventory and receivables.
Pay Suppliers on Time Without Draining Cash
When supplier bills come due before your customers pay, vendor financing can pay your suppliers now, including in time to capture early-payment discounts, while you repay later.
Need to pay suppliers before your customers pay you? Drip Capital offers collateral-free working capital of up to $3M, with funds in 24–48 hours and 30–90 day repayment terms. Check your eligibility
Frequently Asked Questions
What is an accounts payable template?
It is a spreadsheet for tracking bills you owe suppliers: vendor, invoice number, invoice date, terms, due date, amount and payments. This template also calculates days past due, aging buckets, payment status and early-payment discount savings.
What is an accounts payable aging report?
It groups unpaid supplier bills by how long they are past due, such as current, 1–30, 31–60, 61–90 and over 90 days, so you can see what is overdue and plan payments.
What does 2/10 net 30 mean?
The supplier offers a 2% discount if you pay within 10 days; otherwise the full amount is due in 30 days. Passing up that discount is equivalent to paying an annual rate of about 37% to keep the money for 20 extra days.
How is days payable outstanding (DPO) calculated?
DPO = (accounts payable ÷ cost of goods sold) × number of days in the period. It shows how long, on average, the business takes to pay suppliers.
Should I pay suppliers early or late?
Pay on time to protect supplier relationships and credit terms. Pay early when a discount is worth more than your cost of funds, and look at financing options if paying early would strain your cash.
