Recording your accounting data is sometimes done through accounts payable. Accounts payable allows a company to pay for something at a later date. This can be for inventory, and the freight included in the inventory. Also, any expenses you may have for your business can be paid later through accounts payable. Receiving an accounts payable invoice is the first step. Entering the right data will create a debit to the expense or inventory you purchased and a credit to accounts payable. Checking your total accounts payable periodically is a good idea so as not to become too top heavy with debt. Normally, a vendor (one with whom you buy from) will determine the highest amout they let you purchase on credit based upon your credit history and years in business.  The best idea-try not to have accounts payable at all, and keep paying bills on time.