General procedure for accounts payable

[Former Member]

Hi Gurus,

What is the general procedure for accounts payable.(path purchase order,stores dep like that whom to whom it will pass)

what are main differences between accounts payable and accounts receivable?

What are Special Gl items

What is Noted items

Thanks and Regards,

Saritha S

[Former Member]

Hi sarita

Procedure for A/P:Regarding the Enterprise Structure :There should be following Enterprise structure before you start A/P

1 Company code

purchasing Organization

3.Plant

4 Assignment of plant/Porg to company code and Porg to plant.

5. create vendor master

Then regarding process.

Enquiry from the vendor.

Prepare the comparison chart

Issue the order to the lowest vendor

Goods receipt from the vendor

Quality check

Accounting of vendor invoice

Payment to the vendor

Accounts payable is the management of vendor and accounts receivable is the management of customers.

Spl G/L is normally covers Advance payment to vendor/from customer

Bills of Exchange

Statistical entry like Bank guarantee

Noted items are those itmes like advance request which does not update your general ledger. these are all information in nature.

Cheers.

Surendra

[Former Member]

> Hi Gurus,

>

> What is the general procedure for accounts

> payable.(path purchase order,stores dep like that

> whom to whom it will pass)

<b>I dont really understand what u mean by this- Accounts payable is resulting from procurement/ service cycle. U create a purchase order- receive the goods- make the invoice verification. This will result in accounts payable. When u create PO there is no accounting entries passed. When u receive goods it will pass the following entry:

Stock a/c Dr

Gr/IR ac/c Cr

when the invoice is recieved:

GR/IR Dr

Vendor Cr

When u are making payment

Vendor a/c Dr

Bank a/c Cr

This complete the purchase cycle.</b>

> what are main differences between accounts payable

> and accounts receivable?

<b>Accounts receivable is the mirror image of Accounts payable resulting from Sales and Distribution activity</b>> What are Special Gl items

<b>There is nothing like special GL items. It is called Special GL indicators. Whenever u are receiving down payment ( advance payment) they should be shown separately as per the accounting requirement. They are indicated in the AP or AP by way of special GL indicators.</b>> What is Noted items

<b>Noted items are statistical in nature. Like down payment request. When u want to amke down payment u will create down payment request based on that automoatic payment program will create payment.</b>

> Thanks and Regards,

> Saritha S