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.
Related Links
You May Also Like
-
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.
-
Understand the Accounts Payable process. Understand the AP cycle and the various tasks that need to be completed during AP transaction processing. Learn the key activities and setups that are done in any typical system during the AP processing.
-
Warehouse management and distribution logistics involve the physical warehouse where products are stored, as well as the receipt and movement of goods takes place. Warehouse management aims to control the storage and movement of products and materials within a warehouse. These operations include the receipting of inwards goods, tracking, stacking and stock movement through the warehouse.
-
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.
-
One of the warehousing best practices that retailers like Walmart, Amazon, and Target have adopted is known as cross-docking. During this process the inbound products are unloaded at a distribution center and then sorted by destination, and eventually reloaded onto outbound trucks. In real parlance, the goods are not at all warehoused but just moved across the dock (hence the name).
-
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.
-
Warehouses may seem like a simple, straightforward concept, but they actually include a variety of different types of warehouses that all have their own niche. The type of warehousing that’s right for you depends on your specific industry, location, and needs. From private warehousing, distribution centers, and climate-controlled warehouses, there’s an option to suit every business.
-
Resource Planning is the process of planning for expected workload and determining the number of resources required to complete each activity in the warehouse. There are many types of warehouse positions, and they also vary by the employer, the scale of operations and location. Discussed here are generic positions applicable to warehouse management processes.
-
Transport operations are often divided into full load and part load and due to economies of scale, the unit costs are higher for part loads. Our customer needs several part loads delivering, so it can reduce costs by consolidating these into full loads. Then it gets all the part loads delivered to a warehouse near the suppliers, consolidates them into full loads, and pays the lower costs of full-load transport to its operations.
-
What is a Warehouse & why companies need them?
All organizations hold stocks. In virtually every supply chain, gaps exist between when something is produced and when a customer is ready to buy or receive it. Stocks occur at any point in the supply chain where the flow of materials is interrupted. This implies that products need to be stored during this period of gap.
