ACCOUNTS PAYABLE

This chapter discusses the accounts payable (AP) function, emphasizing best practices, emerging issues, and standards. The accounts payable process involves reviewing an enormous amount of detail to ensure that only legitimate and accurate amounts are entered in the accounting system. The chapter discusses the processes and procedures that the AP department handles on a day-to-day level, whether the department and these processes are integrated within a purchase-to-pay process or executed in a more stand-alone structure. One of the most important tasks in the invoice payment process is the practice of matching the information on the invoice (or substitute document) with information that backs up or supports the payment. There are two primary modalities in which invoice payments via commercial credit card can be made. They can be buyer-initiated payments or supplier-initiated payments. The chapter also discusses the benefits of paying invoices via a virtual commercial card.