Accounts Payable FAQ's

What are the types of Accounts Payable?

Some of the Accounts Payable categories are Trade, Non-trade, Taxes, Loans, and Wages. Accounts Payable (AP) is the amount of money that a company owes to its suppliers and creditors for goods and services that it has received. Except for wages, all the accounts payable categories are paid following an Accounts Payable process.

What are the risks of accounts payable?

Accounts payable can be risky if the company does not have sufficient cash flow. This can lead to late fees, penalties, and even bankruptcy. This can further lead to disruption in the supply of goods and services. Thus, further affecting the cash flow. Tracking accounts payable is important to avoid any negative consequences.

How can I avoid unauthorized purchases?

Accounts Payable fraud is a major issue for businesses. It can happen in several ways, such as when an employee creates a false vendor

Whom should I contact if I have a query about a payment?

Contact the Accounts Payable department or contact the individual that handles the payment type you are looking for.

How do Accounts Payable Services work?

Any Accounts Payable Services offer an end-to-end process that includes:        

1. Invoice Capture
2. Matching Purchase Orders or Contracts
3. Invoice Approval
4. Generating AP list
5. Payment Approvals
6. Payment Upload
7. Payment Authorization

What information is required to approve an invoice for payment?

The most common information required to approve an invoice is as follows:    

1. General details of the supplier
2. Date of the invoice
3. Date by which payment must be made
4. Taxes to be paid on the same
5. Description of the goods or services provided
6. Mode of payment and related information
7. Value of goods or services provided

What documents are required for invoice verification?

Invoice verification must be done to prevent paying for services that have not been rendered. This process may differ from one organization to another. There are several types of invoice verification processes too. The following  documents /information are common in any process:

1. A valid Trade License Number
2. Quoted estimate for the same service/product
3. Issued Purchase Order
4. Order Delivery Receipt

How can accounts payable be managed effectively?

To manage your accounts payable effectively, you should consider automating the processes. Accounts payable automation can help you to keep track of your payables and payments, as well as help you to stay organized.

What is the turnaround time for a vendor invoice request?

The check for the vendor invoices will be processed based on the credit period, provided all the approvals are in place. This differs from one organization to another.

What are some best practices for Accounts Payable?

Best practices for Accounts Payable can vary drastically depending on the organization. For some, regular reviews of Accounts Payable processes can prevent expensive errors. The best way to determine what works best for your organization is to carefully consider your specific situation.

How much do Accounts Payable Services cost?

Determining the cost of Accounts Payable Services depends on the hours, the volume of invoices that are to be processed, and the complexities faced while processing them.