Basic understanding of When Accounts Payable department's work starts to the commerce and Finance students

 When Accounts Payable department's work starts

Hello friends today we are going to discuss about the accounts payable departments works starts from,

Accounts Payable departments works starts from the invoice received from the vendor followed by reviewing the validity of the invoice and comparing the invoice with the Goods received note and purchases order,

invoice will be processed by entering the details in the system (ERP) and the Accounts payable flow will be end with the payment of the invvoice on due date as par contract with the vendor.

There are various kind of invoices.

Service invoices are for the services that a company mioght need Eg. cleaning, maintenance, internet.

Direct Invoices- issued for the goods, part and components which is required in the manufacturing.

Indirect Invoices- issuedf for the other goods or services used. eg. office supplies. 

PO-Invoices- Issued as a result of earlier issued purchases order, normally purchases orders are for goods and non po invoices are for the services.

Non-PO invoices - for which value of services nannot be ascertained, whihc is approved by the point of contact as defind in the approval matrix.