SAP FINANCE: A Project on what Account
Payable is all about?
A bit about
Account Payable:
When a company/Organization buys a good on loan that is
needed to pay back in short span of time is called as Account payable. Account Payable is known as a complete
list and bookkeeping of a company’s accountability and credit owned because of
the buying of good and services. Taking delivery of the products without paying
their credit, buying goods on balance, is listed as Account payable. While keeping correctly, the total balance
should be equal to the amount of the outstanding vendor invoices received. The
Account payable credit should be equal to the amount of the total of Unpaid
Vendor Invoices.
How to Create
Accounts Payable?
Accounts payable are listed in a company general ledger
under the current liabilities section .The finance department credits accounts
payable when the company receives an invoice or payable from a creditor and
debits account when the bill owed the person is paid. In the account payable
all sub ledger connected with main ledger. In the SAP system recorded double
concept as in cashbook that account payable we can recorded all good and
services properly which we payment and received of such purchased bill in the
account.
Important data in the
account payable:
§
Account group=account groups is defines the set
up when we creating a g/l account in thecompany code and chart of account. We
can use g/l account in the chart of account area, we must specify an account
group .The Account group is using we can created the g/l account according to
functional area. The cord of account group is (OBD3).
§
NUMBER
RANGE=number range is unique number id created for an sap object belongs .the cord
to Rate the number range is (XKNI)
§
ASSIGN=we can assign the number range to vendor account.
The cord of assign is (OBAS)
§
Change the vendor=the change the vendor if we
want the we can use the t, code(xk02)
§
The display the vendor=in the sap display the
vendor the t,code is used is (xk03)
Why account payable
is important for the company?
Tracking the accounts payable of a business is important in
order to keep the finances of the business well accounted and prevent a
bookkeeping nightmare. Accounts payable
generally have a deadline; failure to keep to the same
would cause negative outcome.
A company’s accounts payable should be well tracked and paid
for the following reasons:
§
Avoiding Late Payment Fees and Fines Due To
Breach of Payment Terms
§
Ensuring Continued Business Relationship with
Creditors
§
Improving Credit Score
§
Avoiding Financial Fraud
§
Avoiding Overpayment
The key to high efficiency is the right AP software. The
right AP software provides automated invoice processing, which we will discuss
in more detail momentarily. The right AP software also automates the approval
workflow.
Managing your Accounts
Payable efficiently and responsibly is great for your bottom line. Who knew
that paying bills could feel so good!
For enquiry and bookings call @ 91-8146782308,0172-5000750, Location: Chandigarh
Address: The Atlantic
Business Centre
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3, Sector 34 A, Chandigarh 160034.
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