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 Accounts Payable 

Purpose

Accounts payable accounting keeps and manages the account records of all vendors and is also an integral part of purchasing.

This scenario describes the processes that are used in handling business transactions with vendors.

Process Flow

Document parking

If you do not have all the necessary data to enter a complete document, you can begin processing a vendor invoice or credit memo by parking it. Once you receive all the information to complete the document, you can enter it in the parked document and then post the document.

Invoices and credit memos

If you receive a vendor document containing all the required information, you can directly enter and post a document in the system.

Down payments

You create a down payment request if you have made arrangements with your vendor to make down payments and plan to use the automatic payment program or the dunning program. However, you can also make a down payment manually, you do not necessarily require a down payment request. Once you have received the final invoice, you can clear the down payment with this. However, you also have the option of making a transfer posting of the down payment from the special G/L account to the payables account, without clearing it with an invoice.

Payment request

You create a payment request if you want the payment program to pay a parked invoice/credit memo or make a partial payment.

Payment

You can make manual payments in cases where you do not want to use the automatic payment program. In addition, you can:

  • Process partial payments
  • Create residual items
  • Enter reason codes
  • Charge off differences to special accounts
  • Trigger correspondence via reason codes

Account clearing

You can use this function manually or via the clearing program to clear debit and credit amounts that balance to zero (such as invoices and payments that you have already entered).

Release for payment

You can use workflow functions to release invoices that are blocked for payment.

Account analysis

Vendor account analysis includes:

  • Line item analysis
  • Balance analysis
  • Evaluations

Bill of exchange payable

You post your own bill of exchange payments to clear the payables owed to vendors.

Interest calculation

You can calculate interest either on the account balance or on the arrears when calculating interest for a vendor account.