Everything about Accounts payable
Money owed by business to its suppliers
Accounts payable (AP) is money owed by a business to its suppliers, shown as a liability on a company's balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents. An accounts payable department's main responsibility is to process and review transactions between the company and its suppliers and to make sure that all outstanding invoices from their suppliers are approved, processed, and paid. The accounts payable process starts with collecting supply requirements from within the organization and seeking quotes from vendors for the items required. Once the deal is negotiated, purchase orders are prepared and sent. The goods delivered are inspected upon arrival and the invoice received is routed for approvals. Processing an invoice includes recording important data from the invoice and inputting it into the company's financial, or bookkeeping, system. After this is accomplished, the invoices must go through the company's respective business process in order to be paid. Wikipedia →
🧭 Start here: a 6-step reading path
- Read the overview: Accounts payableA 5-minute orientation
- Skim a recent paper: Examining the Plausible Applications of Artificial Intelligence & Machine Learning in Accounts Payable ImprovementInfluential work since 2022
- Pick up a classic book: Controller and CFO's Guide to Accounts PayableThe most-reprinted book on the subject
- Read the landmark paper: A dynamic perspective on the determinants of accounts payableCited 74 times
- Go sideways: Invoice processingA closely related topic
- Go sideways: Electronic invoicingA closely related topic
📖 Definitions
Noun The total amount of money that is owed by a customer to its suppliers of goods and services and is counted by the customer as a current unpaid debt.
Noun plural of account payable
🗂️ The subject at a glance
🏆 Landmark papers (most cited)
A dynamic perspective on the determinants of accounts payable
Accounts payable and firm value: International evidence
Does media reputation affect properties of accounts payable?
AI Driven Accounts Payable Transformation
Partial adjustment toward target accounts payable ratio
How Cash Flow Volatility Affects Debt Financing and Accounts Payable
Accounting and quality management: the accounts payable function under ISO 9000
MANAGEMENT OF ACCOUNTS PAYABLE OF AN ENTERPRISE: ACCOUNTING AND ANALYTICAL ASPECT
🆕 Influential since 2022
Examining the Plausible Applications of Artificial Intelligence & Machine Learning in Accounts Payable Improvement
ENSURING ECONOMIC SECURITY IN THE CONTEXT OF MANAGING ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
Accounts Payable Turnover and Firm Performance of Quoted Manufacturing Firms in Nigeria
Assessment of accounts receivable and accounts payable of the organization
AUDITING THE ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE OF THE ORGANIZATION
📚 Books worth reading
Controller and CFO's Guide to Accounts PayableMary S. Schaeffer · 2006
Fraud in accounts payableMary S. Schaeffer · 2008- 📕Cost recoveryRichard B. Lanza · 2009
Accounts PayableMary S. Schaeffer, Mary S. Ludwig · 1998
Accounts payable and Sarbanes-OxleyMary S. Schaeffer · 2006
The InvoiceJonas Karlsson, Shaun Grindell · 2016
Accounts Payable Best PracticesMary S. Schaeffer · 2004- 📕Accounts Payable SystemsBrent Meyers · 2017
Ranked by number of editions on Open Library, a rough measure of how lasting a book is.
🔗 Related topics
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- Supplier enablement Supplier enablement is the process of electronically connecting suppliers (or other trading partners) to a company's supply chain. Supplier enablement…
- Tungsten Network Tungsten Network is a global electronic invoicing firm that provides supply chain financing services from international offices in the United Kingdom,…
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