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The Accounts Payable-ROLES

The Accounts Payable (AP) department manages a company's payments to suppliers and ensures accurate and timely processing of invoices. Key responsibilities include invoice processing, vendor management, payment processing, cash flow management, reconciliation, tax compliance, and process improvement. The role requires attention to detail, time management, communication skills, and proficiency in accounting software.

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15 views3 pages

The Accounts Payable-ROLES

The Accounts Payable (AP) department manages a company's payments to suppliers and ensures accurate and timely processing of invoices. Key responsibilities include invoice processing, vendor management, payment processing, cash flow management, reconciliation, tax compliance, and process improvement. The role requires attention to detail, time management, communication skills, and proficiency in accounting software.

Uploaded by

allgracebaird
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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The Accounts Payable (AP) department is responsible for managing a company's outgoing

payments to suppliers, vendors, and other creditors. This function ensures that bills and
invoices are paid accurately, on time, and in accordance with company policies and
procedures. Below are the typical roles and responsibilities for Accounts Payable:

Roles and Responsibilities of Accounts Payable:

1. Invoice Processing

 Receive and review invoices: Check invoices from vendors for accuracy (e.g.,
correct amounts, proper account coding, terms, and vendor details).
 Match invoices with purchase orders and receipts: Ensure that the invoice matches
the corresponding purchase order (PO) and delivery receipt (three-way match).
 Verify discounts and payment terms: Ensure that early payment discounts are
applied and payment terms (net 30, etc.) are accurately reflected.
 Enter invoices into the accounting system: Record all invoices promptly in the
accounting software to ensure accurate tracking of liabilities.

2. Vendor Management

 Maintain vendor records: Update and manage vendor details, including payment
terms, contact information, and banking details.
 Resolve vendor inquiries: Address any issues or discrepancies raised by vendors,
such as payment delays, incorrect charges, or missing invoices.

3. Payment Processing

 Prepare payments: Process payments via checks, electronic transfers (ACH), wire
transfers, or credit cards according to the agreed terms.
 Ensure proper authorization: Obtain appropriate approvals for payments before
they are executed, following internal controls and approval hierarchies.
 Reconcile payment schedules: Schedule payments according to due dates to manage
cash flow effectively, taking into account any available discounts or early payment
options.

4. Cash Flow and Budget Management

 Monitor cash flow: Work closely with the finance team to ensure payments are made
within the company’s cash flow capabilities and that there is enough liquidity to meet
obligations.
 Track outstanding liabilities: Maintain a record of unpaid invoices and aging
accounts payable reports, ensuring that overdue invoices are flagged and paid
promptly.
 Assist with budgeting and forecasting: Help provide information for budget
preparation by tracking payment schedules and vendor commitments.(payment
forecaste)

5. Reconciliation and Reporting


 Reconcile accounts payable: Perform monthly or quarterly reconciliations to ensure
that the AP ledger matches the general ledger and that all transactions are properly
recorded.
 Generate AP reports: Prepare and submit reports such as aged payables, payment
history, and vendor analysis to senior management and the accounting team.
 Provide audit support: Assist in internal and external audits by providing required
documentation and explaining accounts payable transactions.

6. Tax Compliance

 Ensure tax compliance: Ensure that applicable taxes, such as VAT, sales tax, or
withholding tax, are properly accounted for and paid in accordance with local
regulations.
 Prepare tax forms: Prepare and file forms such as 1099s (in the U.S.) or other
country-specific tax forms for independent contractors and vendors.

7. Internal Controls and Compliance

 Follow internal policies: Adhere to company policies regarding purchasing,


invoicing, and payment approval to ensure controls are in place and financial integrity
is maintained.
 Detect and prevent fraud: Monitor for fraudulent transactions, duplicate payments,
and incorrect or suspicious invoices, reporting issues to management.
 Maintain confidentiality: Safeguard vendor and financial information to comply
with company privacy policies and legal regulations.

8. Process Improvement

 Optimize AP processes: Identify opportunities to streamline and improve accounts


payable procedures to increase efficiency and reduce processing time.
 Implement automation: Work with IT and other teams to implement automation
tools or software that help improve the accuracy and speed of invoice processing and
payment cycles.

9. Collaboration with Other Departments

 Coordinate with purchasing and receiving departments: Work with the


purchasing and receiving departments to resolve discrepancies related to orders,
deliveries, and invoices.
 Collaborate with the finance team: Provide timely information on cash flow needs
and assist with financial reporting.
 Work with senior management: Report regularly on the status of outstanding
payables, upcoming payment obligations, and cash flow forecasts.

Key Skills and Qualifications for Accounts Payable:

 Attention to detail: Ability to spot discrepancies or errors in invoices or payment


records.
 Time management: Effectively handle multiple invoices and payment schedules
while adhering to deadlines.
 Communication skills: Interact professionally with vendors, colleagues, and other
departments to resolve issues or clarify information.
 Problem-solving: Resolve issues related to invoices, payments, or vendor disputes.
 Software proficiency: Experience with accounting software (e.g., SAP, Oracle,
QuickBooks) and spreadsheet tools (e.g., Microsoft Excel).
 Knowledge of accounting principles: Understanding of basic accounting principles,
such as accrual accounting, journal entries, and the chart of accounts.

By ensuring that invoices are processed accurately, payments are made on time, and
compliance is maintained, Accounts Payable plays a critical role in supporting the smooth
financial operation of an organization.

Job Responsibilities: -( Ramana Sir)


 Ensuring accurate and appropriate recording of revenues and expenses.
 Hands on with day-to-day accounting.
 Proficient in uploading GL/AR/AP master data by using LSMW.
 Purchase Invoice Posting, Advance Payments, Creation of House Banks, Automatic
Payment
Program (F110).
 Clearing The Customers, Vendors & GL Accounts Balances
 Sundry Cr’s Handle (Purchase / Payment) Reconcile with Suppliers
 Sundry Dr’s Handle and Reconcile with Customers
 Monitoring necessary records in proper (Sales / Purchase / Payment / Receipts)
 Good User knowledge of SAP FI-GL, FI-AR, FI-AP.
 User Knowledge in integration of FICO with MM.
 MIS – Reporting to Management on Monthly
 Raising Invoice against PO-MIRO
 Good User knowledge of SAP MM
 Rectification of Reversals Entries for wrongly processed invoices.
 Posting Incoming Payments & Outgoing Payments.
 Goods Receipt against Purchase order-MIGO.
 Creating Service PO and Service Entry Sheet.
 Goods Consummations (MB1A) & Goods Transfer (MB1B).
 Preparation of Transportation bills in every month.
Internal Audit:
 Allotting of work to subordinates.
 Audit planning and audit control in consultation with the Auditors.
 Commitments to the indirect tax compliance.
 Supervising and Reviewing of all areas of internal control systems and branch accounts.
 Incorporating Branch and Departmental Accounting Data in the Head Office Accounts.
 Conducting independent internal review of accou

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