Virtual Business Analyst
AnyStandard.net
STAN'S

Accounts Payable

Supporting Multiple department and Communicate need to others
GOALS:

The accounts payable section of an accounting department,  records
goods and services that are received and the payments it owes, such
as inventory from a supplier or other expenses. Bills from any source
whether it is request from our supplier or employee will be submitted
to Accounts Payable.  The department records each accounts payable
as a liability.

SUPPORTS:
COMMUNICATES with:
Supporting Multiple department and Communicate need to others
Contact : Mary
Support
Supplier
Support
Employee
Support
Finance
Support
Purchasing
Support
Receiving
Bank
Processor
Support
Shipping
Please Visit
A/P
A/P
Purchases
Merchandise Inventory
Perpetual inventory system
Periodic inventory system
For instance: If you purchased 1,000 units of merchandise at $20 per unit.

With a periodic inventory system, a purchase during the accounting period is
recorded as a credit in the A/P account for $20,000 and a Debit for $20,000

With a perpetual inventory system, a change is made in the merchandise
inventory account for $4,000 fir the sale of 200 units.

Under periodic inventory system, the following journal entry is recorded at
the end of accounting period.
Perpetual inventory system updates inventory accounts after each purchase
or sale.

Inventory subsidiary ledger is updated after each transaction.
Inventory quantities are updated continuously.
Perpetual inventory system
Periodic inventory system
Periodic inventory system records inventory purchase or sale in the A/P account.

A/P is updated continuously, however, All Inventory accounts are updated on a periodic
basis, at the end of each accounting period.

Inventory subsidiary ledger is not updated after each purchase or sale of inventory.
Inventory quantities are not updated continuously.
Inventory quantities are updated on a periodic basis.
Purchases
Cost of Goods Sold
Purchases
Merchandise inventory
The following journal entry is
recorded at the end of   
accounting period.

Quantity of merchandise inventory for Accounts
Payable

1,000 units purchased - 200 units sold = 800 units
left

Cost of goods sold
Total purchases - Ending balance of
merchandise inventory
1,000 units x $20 per unit cost - 800 units x$20
per unit cost
$20,000 - $16,000 = $4,000


Quantity of merchandise inventory
1,000 units purchased - 200 units sold = 800 units
left

Cost of merchandise inventory for Accounts
Payable
800 units x $20 per unit cost = $16,000



Ending Inventory and Cost of goods sold  for
Accounts Payable

Ending inventory
Beginning inventory + Purchases during the
period
- Cost of goods sold
$0 + $20,000 - $4000 = $16,000

Cost of goods sold for Accounts Payable
Beginning inventory + Purchases during the
period
- Ending inventory
$0 + $20,000 - $16,000 = $4,000
Hypothetically
Purchased 1,000 units of merchandise at $20 per unit.
  • Pay
    Expenses
  • Invoices
  • Payments
  • Credits
  • Ledger Updates
  • Adjustments
  • Mailings
  • Bills
  • Payments
  • Inventory
    Receipts
  • Returns
Supporting Multiple department and Communicate need to others
  • Maintain Supplier Data
  • Maintain Employee Data
  • Financial transactions
  • P/O Order Maintenance
  • Payments
  • Maintain Exchange Rates
  • Bank Remittance
  • A/P Statements
  • Check Reconciliation
  • Purchase Price Variance
  • Reconcile Expenses
Performing tasks
PO Header & Detail, Supplier Name File, Name Notes, Suplier Address, Tax Certificate, Terms, Trading Partner, EDI Master, Phone/Fax Number, GL Master, GL Control, GL Transactions, Voucher Master, Payment Perposal
Accounts Payable
Support
$20,000
$20,000

$20,000
$16,000
$16,000
$4,000
$4,000
H/R
  • Employee
    information
Support
A/R
  • Cash Credit
    Return
  • Cash Inventory
    Credit
POSITIONS
Mail Room
  • Mailings
  • Bills
I.T.
  • Application
    Issues and
    Changes
Receiving
  • Products
    Received
  • Authorize
    Payment
  • Currencies
  • Trade
Treasury
Accounts Payable Files