Account Payable System
Accounts payable (AP) is cash owed by a business to its providers appeared as a liability in an organisation’s accounting report. Accounts payable are distinct from notes payable liabilities, which are obligations made by formal legitimate instrument documents.
In simple terms, the accounts payable are the purchase goods on credit that a company or an organisation needs to be payback in a short period. It comes under the head’ current liabilities’, and we treat accounts payable as a liability. A company or an organisation treats accounts payable as a short term debt that needs to be paid in a limited time frame to avoid being the default.
To understand it in a layman language, assume that you are a consumer and you use services like telephone, internet, electricity, TV network or cable, etc. The service provider provides you services for a month and sends you a bill every month, and you need to pay it between a specific date or time often called due date.
Similarly, if you are an organisation, then there are high chances that you buy services or goods from company B. The final raised amount needs to be exact or paid back before the due date or given the number of days. You will record this data in accounts payable on the other end; company B will enter this data in their accounts receivable records. As per the accounts methodology, this is treated as a sale even we know, no money has been exchanged. It would be of great help if you were very careful while processing transactions for accounts payable. In one business ERP solutions, you will get a smooth and easy to understand interface where you can handle your data related to accounts payable in a straightforward manner—people with excellent subject knowledge designed the software.
Account payable process:
In every company, the size of the account payable depends on the size of the organisation & its business. We base on the total number of vendors or service providers. Medium and large companies or enterprises followed a particular process before making any transaction of payment with the vendor or service providers. The process contains:
- Receiving the bill:This is the first set of accounts payable process. We use the statements to trace the data like the quantity of the goods, cost, date, and time.
- Scrutinising the bill for details:In this process, a team closely examine or inspect the statements for the verification of the vendor’s name, order authorisation, date, requirements, etc.
- Updating the records for the bills received:In this process, we update the records in the ledger or in account software where ‘Onebusiness’ ERP software can help you to record the data accurately neatly and cleanly.
- Making timely payment:In this process, one needs to process the charges before the due date to avoid penalties. For this, you require the account details of the vendors for payment. You also need an authorised signature in case of cheque payment.
With OneBusineess ERP Solutions, you will get the below features in the account payable option:
- Adding a new entry
- Deleting an entry
- Editing/updating an entry.
- View an entry.
- You can download the whole data of account payable entries.
- You can filter the data by using filters like date slot, company, bank, vendor name, etc.
- It gives you complete access to your entries.
- You can record new vendors too.
- For adding new entries, you can contact our support team for any customisation.
- Current options for accounts payable data are; documented number, company code, name, down payment, amount, payment type, message, created date, etc.
Reasons why you should choose the ‘OneBusiness’ Financial accounting module for your payable accounting:
- The interface is user-friendly; even a first time user can understand the layout and modules very easily.
- It saves a lot of time teaching or training because it is straightforward to understand.
- In-case of any customisation as per your business needs, you can contact us anytime. We also provide custom changes as per business requirements.
- Check your business insights from anywhere with real-time data.
- Say no to costly ERP software, OneBusiness is very economical to implement and run.
- Automated features to handle your accounting problems and save time.
- Get real-time data to make end-time strategies.