Accounts Payable

Accounts payable is part of a company's financial accounting. It provides a summary and overview of incoming invoices, payment transactions and open items between your own company and the vendors.

Accounts Payable Department

Accounts Payable has the following main tasks:

  • Maintain master records for vendors (suppliers / service providers)
  • Record and post all incoming invoices
  • Manage open items
  • Arrange for the timely payment of invoices
  • Before approving or paying invoices, check them for scope, quality and correct price
  • Archiving of all invoices in accordance with the legally prescribed reporting and retention guidelines
  • Implementation of dunning and travel expense reports

In addition, accounts payable is sometimes used to optimize processes in a company. On the basis of the recorded facts and data, processes in the company can be simplified and thus accelerated in the future in order to effectively reduce company costs.

Vendor master record maintenance

In the vendor master record maintenance, a vendor number is assigned to all suppliers and service providers (vendors) with whom we (possibly) collaborate on a permanent basis. The data of the Accounts payable such as contact details, bank details (including payment methods) and general company data are often recorded in an ERP system.

The accounts payable department records one-off transactions in a one-time account (Conto-pro-Diverse). It is the collection of all incoming and outgoing payments that result from individual business relationships. Payments that cannot be clearly assigned are also temporarily recorded here.

Summary

  • Accounts payable is part of financial accounting
  • one of the main tasks is the recording and booking of invoices and open items
  • Accounts payable can support process optimization in the company
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