Overview of Accounts Payable
Every Payment that is issued out of the system stems from a two-part process in which a Vendor Bill pink Payable becomes a Payment. This applies to all methods of payment: Credit Card Payments, Check, Bank Drafts, EFTs, etc. Checks print in "Check at Top" format, followed by two stubs.
AP Financial Postings are automated in two separate events.
- by the Acceptance of a pink Payable, and
- by the Bills Due > Payment > Accepted process.
Summary of Accounts Payable Process
Quick 10-minute overview of the AP Process, beginning with the Financial Statements.
Summary of Accounts Payable Video
If you are unable to view the video above, please click HERE.
Overview of Accounts Payable Video
Financial Posting Impact of Accepting a pink Payable
Balance Sheet - AP Liabilities GL is Credited
Income Statement - Purchases GL (material), Purchases Labor GL (labor), or Overhead Operating Expenses GL (rent, payroll, utilities, etc.) is Debited.
Financial Posting Impact of Bills Due > Payment
Balance Sheet - AP Liabilities GL is Debited
Balance Sheet - Payments Funds Account is Credited (whether that is Checking Assets GL or Credit Card Liabilities GL)
Types of Payables
General - Utilities, insurance, Payroll, Office Supplies, etc.
Labor - Payables tied to Labor Work Orders, ties back to the jobs.Material - Payables tied to PO Inventory Records, ties back to the jobs.
Reports
AP Bills Due > Payment > Print
Payables Aging
Remittance Report
Bank Register
Reconciliation Process
Attachments
Diagram of General Payables Posting Events
Diagram of Labor Purchases (COGS) Posting EventsDiagram of Material Purchases (COGS) Posting Events - JobRunner
Diagram of Material Purchases (COGS) Posting Events - FloorManager
Training-v22-20230511BG-KB