Accounts Payable (A/P) are often roughly defined as a file or ledger account that records amounts owed to suppliers, contractors, or individuals. An accounts payable clerk is liable for the weekly or monthly payment processing within a corporation. This included such payments as; payroll, office supplies, merchandise, and utilities.
The major portion of the work involves validating and processing invoices for payments, however; it does involve a couple of other processes.
Accounts Payable Services works closely with the shipping and buying departments to validate the supplier invoices to be paid. When a sale is formed by a corporation, a sale order is made with a singular identifier like a sale order (PO) number. This order records the date on which the initial order was made, the expected arrival date of shipment, the number of units purchased, the cost per item, and any shipping charges indicated by the supplier. This is a particularly useful tracking method for shipments coming into the corporate. If a shipment isn't received by the expected date, you'll be reminded to follow up with the supplier. Once the products have arrived, they typically accompany a packing slip or (bill of lading) attached to every box. This is what's employed by the shipper to verify what has been received.
Any discrepancies are noted and this packing slip is attached to the first order. This is done to verify that each one goods on the first order is received and if there's a backorder, the purchaser is going to be able to update his/her purchase orders accordingly. He or she is going to then follow up with the supplier on the expected date of arrival of the missing goods.
Once this process is complete, the signed order and bill of lading are shipped to the Accounts Payable department for payoff. If an invoice is received, the clerk will verify that the invoice amount equals the purchased amount. If it's verified and everyone is correct, the invoice is going to be paid and everyone's cheque number or other tracing information is going to be added to the front of the invoice. It will then be filed for future reference. If there is a discrepancy, the A/P clerk will have to contact purchasing and/or shipping to verify the correct amounts.
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Infographic: Differences Between Accounts Receivable and Accounts Payable
