Creditor (kreditors)
In Latvian: Kreditors
A creditor (kreditors) is a person to whom the undertaking owes money, for example a supplier whose invoice is unpaid or a bank that made a loan. Amounts owed to creditors are liabilities, shown on the equity and liabilities side of the balance sheet.
Creditors are split into long-term and short-term. Long-term creditors are liabilities falling due more than 12 months after the year end; short-term creditors are those due within the next 12 months and other liabilities arising in the normal operating cycle.
Typical items are bank loans, advances received from customers, amounts owed to suppliers and contractors, taxes and social security contributions, unpaid dividends and accrued liabilities.
An advance received from a customer is a creditor item too: until the goods are delivered, the company owes the customer either the goods or the money.
Example
In December SIA "Ozols" receives a supplier invoice for materials of EUR 1,815, due in January. On 31 December 2025 the amount is shown among short-term creditors as owed to suppliers and contractors.
How Fakts handles it
In Fakts, supplier bills live under Purchases with their status and due date.
Legal basis
- Law on Annual Statements and Consolidated Annual Statements, Section 16 likumi.lv
- Latvian National Terminology Portal: kreditors termini.gov.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.