AP - Amazon Glossary

AP (Accounts Payable) refers to the department and system at Amazon responsible for processing payments owed to vendors for purchase orders (POs), shipments, co-op agreements, and marketing reimbursements.

In the Vendor Central world, AP handles:

• Invoice verification
• Payment terms enforcement (e.g., Net 30, Net 60)
• Dispute resolution for shortages or chargebacks
• Remittance processing (sending payments via wire, ACH, etc.)
• Handling deductions or disputes (e.g., for damaged or missing items)

Typical payment flow:

1. Vendor ships goods to Amazon
2. Amazon confirms receipt
3. Vendor submits or Amazon auto-generates invoice
4. AP processes the payment according to the agreed payment terms

Important tools for vendors:

• Invoice Management dashboard in Vendor Central
• Remittance Advice Reports
• Payment History Reports

Common issues handled by AP:

• Short-payments
• Missing invoices
• Disputed chargebacks
• Overdue balances

From a vendor’s point of view:

AP = the team and system that makes sure you get paid.
Staying on top of AP issues is critical for cash flow and financial forecasting.