Accounts Payable

Finance

Definition

Accounts Payable is a financial process within ERP systems that involves tracking and managing an organization's short-term debt or obligations to suppliers and creditors.

Detailed Description

Accounts Payable is a critical component of an ERP system used to manage the company's financials related to its short-term obligations. It involves processing invoices from suppliers, verifying the accuracy of billed items, managing payment terms, scheduling payments, and maintaining records for future reference. The accounts payable module helps ensure that all financial transactions are properly documented, payments are made on time to avoid late fees, and cash flow is effectively managed. This process is essential for maintaining supplier relationships and ensuring the company's creditworthiness.

Key Features

Automated transaction recording
Compliance management
Integration with general ledger
Invoice processing and validation
Payment scheduling and execution
Vendor and supplier management

Common Modules

Cash Management

Helps manage an organization's cash flow, including inflows and outflows, to optimize financial stability.

General Ledger

Records and manages all of a company's financial transactions, providing a comprehensive view of its financial health.

Procurement

Facilitates purchase order management, supplier selection, and order tracking to streamline the buying process.

Popular Implementations

Oracle Accounts Payable Cloud

Offers a powerful platform for managing payables in the cloud, with real-time insights and streamlined processes.

SAP Accounts Payable Module

SAP provides a comprehensive accounts payable solution that automates invoice processing and offers integration with its broader financial suite.