What is the journal entry when invoices are paid in a payment run?

Beginner

Answer

Paying invoices debits accounts payable (reducing the liability) and credits cash/bank. If an early-payment discount is taken, the discount is credited to a purchase discount or expense-reduction account so only the net cash leaves. This clears the specific invoices selected in the run.

Pay $10,000 invoice with 2% discount taken:
  Dr Accounts Payable  10,000
      Cr Bank                  9,800
      Cr Purchase Discounts      200

Real-world example The payment run posts AP clearing for each paid invoice and books the discounts captured that week.

Common follow-ups: Where does the discount get posted? | How is the payment matched to invoices?

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