Account payable is the outstanding balance that we must pay to the third party or suppliers. We pass the entries in account payable from two sides: purchase order and general ledger. Purchase order module will be posted after material order has been arrived in warehouse and combining with invoice plus related documents that have been approved by authorized person. General ledger normally from service entry where it must be attached by service agreement between company and third party.
Accounts Payable is a short term liability of an organization. It's a process by which a company buys goods and services on credit and is billed in the form of an invoice, which states the terms and conditions of the payment. Accounts Payable is recorded as a current liability in the balance sheet. All accounts paayble entries are to be coded under the right G/L accounts to have an accurate picture of the company's short term liability. Source: CoolInterview.com
Account payable is a process of paying amount to supplier or third party as per the purchase order made.we see three types of account payable entries 1) at point of goods received to wharehouse or store 2)at the time of invoice received 3)on payment of invoice when a supplier sends goods to the purchaser the goods are reserved or kept at wharehouse as soon as goods received after the verfication entry will be inventory a/c dr to grni/grin/recipt controla/c(suspense) after the goods received and GRN(GOODS RECEIPT NOTE)issued then invoice raised and entry will be grni/grin/recipt controla/c dr To vendor a/c after invoice received and verified we have to issue payment entry Vendor a/c dr to bank a/c these are the main three entries for initial ap process includes
Accounts payable are the short term obligations of a company, which arise when it purchases some goods on credit or receive some service whose payment is still due. AP are shown under the head current liabilities in the balance sheet. Source: CoolInterview.com