Accounts payable procedures involve invoice handling, journal entries and authorizing payments, notes the Houston Chronicle. Accounts payable represents a purchase from a vendor or supplier on credit, and the balance sheet contains the associated account.
After receiving an invoice from a vendor, an accountant should enter it into the accounting system. Relevant information to enter includes vendor information, due date and total amount due, reports the Houston Chronicle. Moreover, the accountant should verify the invoice for accuracy. Documents to reconcile against include receiving reports, purchase orders or bills of lading. Items to reconcile include prices, quantities and descriptions.
The accounts payable journal entry involves a debit to the purchased asset and a credit to accounts payable, states About.com. Accountants should pay off all accounts payable items in no more than one year. Eventually, the accountant should make an entry in the cash disbursements journal to reduce cash and reduce accounts payable when paying the item.
To authorize the accounts payable payment, schedule a remittance for the next time a company issues checks. The accountant, or payroll clerk, should attach a copy of the invoice to the check and mail it to the corresponding vendor. In addition, it is important to keep a copy of the check as proof of payment, mentions the Houston Chronicle.