Account payable is the outstanding balance that we must pay to the third party or suppliers.

We pass the entries in account payable from two sides: purchase order and general ledger. Purchase order module will be posted after material order has been arrived in warehouse and combining with invoice plus related documents that have been approved by authorized person. General ledger normally from service entry where it must be attached by service agreement between company and third party. Accounts Payable is a short term liability of an organization. It's a process by which a company buys goods and services on credit and is billed in the form of an invoice, which states the terms and conditions of the payment. Accounts Payable is recorded as a current liability in the balance sheet. All accounts paayble entries are to be coded under the right G/L accounts to have an accurate picture of the company's short term liability. a/p which show the balance sheet on liability,who purchase the goods and service on credit

When booking invoice: Purchases a/c ....dr To Party (if it is a credit purchase other wise cash is credited) When making payment in cheque: Party a/c ...dr To Post dated cheque (if cash is paid cash will be credited) When money is with drawn from the bank: Bank a/c ....dr To Cash accounts payable is module in SAP.For making payments to a vendor agst. the goods/services provided by the vendor,it handles all the liabilities. Account payable is a process of paying amount to supplier or third party as per the purchase order made.we see three types of account payable entries 1) at point of goods received to wharehouse or store 2)at the time of invoice received 3)on payment of invoice when a supplier sends goods to the purchaser the goods are reserved or kept at wharehouse as soon as goods received after the verfication entry will be inventory a/c dr to grni/grin/recipt controla/c(suspense) after the goods received and GRN(GOODS RECEIPT NOTE)issued then invoice raised and entry will be grni/grin/recipt controla/c dr To vendor a/c after invoice received and verified we have to issue payment entry Vendor a/c dr

to bank a/c these are the main three entries for initial ap process includes

Accounts payable are the short term obligations of a company, which arise when it purchases some goods on credit or receive some service whose payment is still due. AP are shown under the head current liabilities in the balance sheet. money which is owned to vendors for products and services purchased on credit. entry for accounts payable: purchase A/c.........Dr To, party A/c Accounts Payable means All Creditors and Company Direct& Indirect Exp After Bill passing Vendor A/c Dr. Bank/Cash A/c Cr Accounts Payable is a Short term Liability. For ex:- when goods purchased from vendor on 30 days credit Basis After the due date we have to pay that amount as per invoice (payments terms & Conditions) Account payable is the outstanding balance that we must pay to the third party or suppliers. We pass the entries in account payable from two sides: purchase order and general ledger. Purchase order module will be posted after material order has been arrived in warehouse and combining with invoice plus related documents that have been approved by authorized person. General ledger normally from service entry where it must be attached by service agreement between company and third party.Accounts payable are the short term obligations of a company, which arise when it purchases some goods on credit or receive some service whose payment is still due. AP are shown under the head current liabilities in the balance sheet.