Use Accounts Payable to enter and track amounts owed to vendors and customers, as well as track other charges incurred by companies you deal with. When you send a purchase order to a vendor, that vendor sends an invoice to you to account for each item you ordered. You then use that invoice to match what you ordered to what was received. You can reconcile the purchase order and resolve any discrepancy that may occur, such as not receiving all the items you ordered.
The Accounts Payable system reduces confusion and miscommunication within your company. When problems do occur, you spend less time fixing them because the payables system allows you to virtually recreate the point in time when the problem developed.
Use the procedures in the following areas to manage your accounts payables: