A huge debt can kill a business.
A dissatisfied supplier might pass the overdue invoice to a debt collection agency.
The debt collection agency will charge fees which have to be paid by the business, not the supplier, so in the end the business will end up paying way more than the original invoice amount.
The fees are coded to ‘collection fees’ expense on the chart of accounts.
Accounts payable are a liability to a business.
The dictionary defines this as a legal responsibility, or in simple terms a burden and a problem!