Accounts Receivable/Accounts Payable (AR/AP)

Accounts Receivable (AR) is one of a series of accounting transactions dealing with the billing of customers who owe money to a person, company, or organization for goods and services that have been provided to the customer. In most business entities, this is typically done by generating an invoice and mailing or electronically delivering it to the customer, who in turn must pay it within an established time frame called credit or payment terms.*

Inntopia example: John Smith reserved a room for $150. The "account receivable" on the itinerary from John is $150.

*Definition quoted from Wikipedia.org

Accounts Payable (AP) is a file or account that contains money that a person or company owes to suppliers but has not yet paid (a form of debt). When you receive an invoice, you add it to the file, and then you remove it when you pay. Thus, the AP is a form of credit that suppliers offer to their purchasers by allowing them to pay for a product or service after it has already been received.*

Inntopia example: ABC Motel’s standard room was reserved by John Smith on XYZ.com. The "account payable" on this itinerary is the cost of the room offered to XYZ.com by the supplier (retail price MINUS reseller's commission or markup).

*Definition quoted from Wikipedia.org