Accounts Payable Description

Accounts Payable Description

Companies and businesses have huge transactions pertaining to their accounts payable process. They receive goods and services from various suppliers and they need to manage timely payments to these creditors to avoid default and adhere to the payment terms.

Accounts Payable Description

“Accounts Payable” is used as a generic term to represent various different things related to AP process. Some of the common usage of the term is:

Accounting Entry: As explained before “Accounts Payable” refers to the accounting entry that indicates a short term liability payable to the supplier of goods and services for the goods supplied or services rendered. It is a short term liability and categorized as Current Liabilities under the balance sheet head “Liabilities”.

Accounts Payable Sub Ledger: Companies and businesses have huge transactions pertaining to their accounts payable process. They receive goods and services from various suppliers and they need to manage timely payments to these creditors to avoid default and adhere to the payment terms. They use a subsidiary ledger generally referred to as “Accounts Payable Sub Ledger” and sometimes just as “Accounts Payable”.

Accounts Payable Process: Accounts Payable term is also used to refer to the accounts payable process. This process involves receiving the goods or services, verifying the quantity and quality with the Supplier Invoice and releasing the payment as per the agreed payment terms.

Accounts Payables Department: As companies have large number of transactions related to AP Process, hence many a times they need a separate division, branch or department to manage and handle all the AP related transactions. That department is referred to as Accounts Payable Department and sometimes just as Accounts Payables.

Eventually once we understand the accounts payable process and what are its elements we can easily understand what is being referred to at any point in time.

Accounts Payable Description

Related Links

Creation Date Sunday, 15 April 2012 Hits 13421 Accounts Payable, AP, AP Cycle, AP Process, Finance, Functional Knowlede

You May Also Like

  • Accounts Payable Definition

    Accounts Payable Definition

    Understand what we mean by accounts payable. Why the process is called accounts payable and what are the other names by which this process is known as. Download a ready recokner to keep with you.

  • Warehouse Components

    Warehouse Components

    At a high level, the essential elements in a warehouse are an arrival bay, a storage area, a departure bay, a material handling system and an information management system. As part of the process for enabling a warehouse layout, you must define warehouse zone groups, and zones, location types, and locations.

  • Accounts Payable Journal Entry

    Accounts Payable Journal Entry

    Although in the large organizations the Procure to Pay Accounting process starts when the purchase order for supply of goods is released to the supplier. To keep things simple in the beginning we will discuss the core accounting entries related to the Accounts Payables process.

  • Accounts Payable Documents

    Accounts Payable Documents

    This article discusses the documents that gets generated during the procure to pay process. Undestand why these documents are created, what is their business significance and how they are handled and generated using ERP or automated systems.

  • Define Accounts Payable

    Define Accounts Payable

    Payables are often categorized as “Trade Payables” & “Expense Payables”. “Trade Payables” are the monies due for the purchase of physical goods that are recorded in Inventory. “Expense Payables” are the monies due for the purchase of goods or services that are expensed.

  • Miscellaneous Warehouse Processes

    Miscellaneous Warehouse Processes

    At the end of each inventory control, the Contractor provides the Ordering Person with an inventory report which contains a list of all stock adjustments. The Ordering Person uses the report to create, by use of his/her own means, necessary value and accounting adjustments related to the stock. Let us look at some to the mislaneous warehouse processes not covered earlier.

  • Overview of Third-Party Logistics

    Overview of Third-Party Logistics

    Third-party logistics (abbreviated as 3PL, or TPL) is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services. A third-party logistics provider (3PL) is an asset-based or non-asset based company that manages one or more logistics processes or operations (typically, transportation or warehousing) for another company.

  • Warehouse Packaging Process

    Warehouse Packaging Process

    Before shipping, businesses need to make sure that the items will arrive in good condition. Packaging is a form of protection against environmental threats that the product will face from the time it leaves warehouse facility until the time it reached the customer. The packaging is intended to provide protection for the item as it is being handled in the warehouse or when the item is being shipped.

  • Import Export Documents

    Import Export Documents

    This article discusses the key documents that gets generated during the import/export process. These documents may apply to both invoice to cash as well as order to cash cycles. Also learn the major custom docments for India.

  • Inbound Receiving Process

    Inbound Receiving Process

    When products arrive at a facility, there need to be a defined process to let them in. The process for accepting inventory when it arrives is called "Receiving". Any warehousing operation must be able to receive inventory or freight from trucks at loading docks and then stow them away in a storage location. Receiving often involves scheduling appointments for deliveries to occur, along with unloading the goods and performing a quality inspection.

Explore Our Free Training Articles or
Sign Up to Start With Our eLearning Courses

Subscribe to Our Newsletter


© 2023 TechnoFunc, All Rights Reserved