What do you mean by Accounts payable cycle?

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  • Member Since Jul-2008 | Jul 1st, 2008

Accounts payable process means by checking the payable invoices (purchase) and then send it to payment and lastly settlement of payment.

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The Accounts payable cycle is one of the internal processes of operating cycle in which time is measured for making cash outflows into cash inflows. In the process of Accounts payable cycle time taken for receiving cash or money in accounts payable is measured. This time taken is directly proportional to the mean number of days taken for converting business into sales in the process of accounts payable.

Mohamed Najeeb

  • Oct 30th, 2007

Accounts payable cycle starts with cash. Cash converted to goods, goods converted into credit sales, credit sales converted to creditors, and finally creditors converted to payables.

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  • Oct 14th, 2016

Accounts payable process means:
1. Confirm receipt of goods or services;
2. Verify approval using a purchase order or other authorization document;
3. Confirm the invoice amount for accuracy;
4. Prepare and complete check run for amount due;
5. Mail the check;
6. Record the accounts payable transaction in the general ledger.

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Sagar Nayak

  • Nov 1st, 2016

Accounts Payable cycle is otherwise called as P2P Cycle means Procurement to Payment Cycle which includes : Market Query-->Quotation-->Purchase Requisition-->Purchase Order-->Delivery Note-->Receipt Note-->Purchase Order-->GR/IR (Good Received/Invoice Received)-->Invoice Verification-->Purchase Entry-->Final Payment.

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