What is the Process for Tracking Accounts Payable?
The process for tracking and paying accounts payable begins with the decision to order supplies or materials. Once that decision has been made a purchase order is completed, giving authorization to the appropriate personnel to place the order through a supplier. Once that purchase order is drawn up and the order placed, the Accounts Payable Department takes over, following the order from start to end. To do this, most companies make use of accounts payable software, which links purchase orders, invoices, receipts, and notations that final payment has been made. However, whether the tracking is done by computer or by hand, the process is the same. With some minor variations, the steps for tracking accounts payable will follow these guidelines: 1. A purchase order will be completed. 2. The order will be placed or the purchase made. 3. The expense will be recorded in a cash disbursement journal, even if the purchase was made on credit. Both purchases and payments are noted in the cash dis
