Basic understanding of Accounts Payable/ Procure to Pay Work flow to the commerce and Finance students

 Accounts Payable/ Procure to Pay Work flow 

Step:- 1. Accounts Payable/Procure to Pay process starts with the process of need Identification of products/ raw material .

Step:- 2. Once the need is identified , the need send to procurement department with the Purchases Requisition Note (PRN),

Step:- 3. Procurement team identify the supplier to whome the acquire a specified goods/products and send them a purchases order.

Step:- 4. After receiving Purchases Order (PO) from the procurement team, Supplier send the required Raw material/Products to the warehouse of the buyer organization, here the warehouse employee receives the goods and confirm the goods received and creates a goods received document.

Step:- 5. Vendor sends a invoice to accounts payable department of the buyer and warehouse sends the goods received documents to AP Department.

After this invoice will be processed and paid off on the due date as per the terms of payment with the vendor.

Accounts Payable is the department in which we verify the details entered into the goods received and invoice are same.

In the mean time Accounts Payable is a part of complete Procure to Pay Process. Procure to pay starts with need identification and ends with the Accounts Payable process.