Accounts Payable Questions

There are broadly  2 Type of accounts

1. Personnel Accounts

2. Impersonnel Accounts.

Personnel Accounts is an account maintained to record transactions with persons. Based on the classification of the persons personnel account can be of

1. Natural Personnel Account (Mr. Ram, Mr. Robert, Mr.Rahim)

2. Artificial Person (all entities like companies, banks, municipal corporations, all statutory or non statutory bodies)

3. Representative Person: Representing group transactions for group of persons like Salary Payable Account. Taxes payable account.

Where as Impersonnel Account shall be of Two types.

A. Real Account      B.Nominal Account.

Real Accounts are accounts to record transactions relating to Assets. Like Cash, Plant & Machinery etc., These type of accounts are permanent accounts.

Nominal Accounts are the accounts used to record the transactions relating to Income and Expenses. Like Salary, Power, Sales etc., At the end of the year all the nominal accounts are closed by transferring to Profit and loss account or Income and Expenditure account. The net differnce shall be carried forwarded to Balance Sheet.

Invoice holds are 2 types
1)Sytem Hold               2) User Defined Holds.

Sytem Holds: Sytem holds the invoice if the Invoice Amt total is not equal to Invoice Distribution Amt. To release the hold correct the amount and again validate the invoice.

User Defined Holds: These is defined by user. If we do want to make payments to the validated invoice. Go to particular invoice and apply hold going to Holds tab.

Accounts payable refer to the current liability of a business or an organization. That is the unsettled payments in a business or an organization refers to Accounts payable.

Bills payable refers to bills settled. In other words the paid and accepted recorded bills in a business or an organization refers to bills payable

Employee Travel and Expense Report (ETER ) / Direct Pay / Unencumbered Goods and Services

- The ETER is examined for compliance with Travel policy by the accounting clerk prior to submission to Accounts payable

- Accounts Payable enters ETER Information into Banner as a Direct pay, generates a Banner invoice number, and records invoice information

- Reimbursement checks for ETERs will be processed within five business days after a completed and correct ETER is received by Accounts payable and scheduled for payment in the payment cycle following.

- ETERs should be submitted within  60 calendar days of incurring the expenses. TEARs submitted for expenses older than two months will not be processed nor reimbursed.

A key functional area of SAP for Utilities that supports cross-company exchange of settlement data based on international standards such as EDI, XML, and Microsoft Excel.

Intercompany data exchange manages data transfer between retailers, distributors, and independent service operators with special regard to the requirements in deregulated markets.

The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero.During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in a bank clearing account are indicated as cleared.

You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

Purchasing good two kinds of entry 

Either Cash or Credit 

If Cash

Purchase A/c ------ Dr  xx  To Cash A/c

(Being good purchase on cash)

If Credit 

Purchase A/c ---- Dr  To Supplier A/c

(Being goods purchase on Credit)

Excess payment to supplier is treated as Advance paid to supplier. This will show as debit balance in supplier account.

Supplier can send the payment by way of cheque / demand draft without adjusting in his subsequent bills.