ACCOUNT PAYABLE SYSTEM

Developed By:Parsana Ankit. (080450116206) Pandorwala Pritesh. (080450116205) Patel Brijesh. (080450116028)
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Account Payable
Introduction
Customer order some item which is inputted into the order file. In the order file order detail is inputted. Then verify that the order is valid. If order is valid then It is inputted into the pending order file. Then this pending order file is assembled requisition to purchase department. In this process venders address and its details are also included. Then purchase department is said that the order is assembled to which vender. Then it will give to the purchase order details files. After that it verify the current shipment. Then it give note to the purchase department. The accuracy of invoice. If it is accepted then it will give to the account prepare a vender product. Then venders payable cheque is inputted to purchase department.
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Account Payabel is a file or account that contains money that a person or company owes to suppliers , but has not paid yet (a form of debt). When you receive an invoice you add it to the file , and then you remove it when you pay . Thus, the A/P is a form of credit that suppliers offer to their purchasers by allowing them to pay for a product or service after it has already been received.

The ACCOUNTS PAYABLE SYSTEM is used to track and manage the monies owed by a business to its vendors. Vouchers created by the PURCHASE CONTROL SYSTEM can be automatically posted to this module. Creation and printing of checks on bank stock check forms is supported as is reconciliation of multiple checking accounts.

Cash management is improved through the use of a PAYABLES AGING report that ages the vouchers according to their due date for each vendor. Control journals are created each step of the way to monitor the dollars that flow through this system. At the end of the month, all the entries in the payables ledger are summarized and updated to the GENERAL LEDGER SYSTEM.

accounts payable system accepts purchase order, supplier invoice, and receiving notice data; updates stored accounts payable data; and then accesses this data and supplier master data to duce supplier payments and accounts pay reports.

Definition of System
An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current liabilities.

Accounts payable are often referred to as "payables". Another common usage of Account payable refers to a business department or division that is responsible for making payments owed by the company to suppliers and other creditors.

The accounts payable system

Input function
Accept purchase order data Accept supplier invoice data Accept receiving notice data

Processing function:
Check purchase order, supplier invoice, receiving notice data check payment due date compute total account payable

Output function: Produce supplier payment Produce accounts payable report

Storage function: update account payable data Access account payable data Access supplier master data

Need of a computerized system

Assuming that existing system is manual. The existing system maintains all the records manually. The manual system is very slow and time consuming. The existing system contains large number of errors due to manual system. Errors are always prone to affect the integrity of a system. Also, security becomes a vital issue in such a system. So, automated systems are required and have become inevitable. Authentication is used to implement a security layer between users and the system. Authentication is also useful to track user trails, i.e. to know what action was performed by which user and when. Various tasks are automated, so it reduces manual performance. 7 The reports are generated automatically without any efforts.

Feasibility study
A feasibility study is undertaken to determine the possibility or probability of either improving the existing system or developing a completely new system. It helps to obtain an overview of the problem and to get rough assessment of whether feasible solution exists. This is essential to avoid committing large resources to a project and then repent on it later.

Need for Feasibility Study :The feasibility study is needed to (1) Answer the question whether a new system is to be installed or not? (2) Determine the potential of the existing system. (3) Improve the existing system. (4) Know what should be embedded in the new system. (5) Define the problems and objective involved in a project. (6) Avoid costly repairs at a later stage when the system is implemented. (7) Avoid crash implementation of a new system. (8) Avoid the Hardware Approach i.e. getting a computer first and then deciding how to use it.

PAYABLES INQUIRY
The PAYABLES INQUIRY program provides a complete history of the vendor account. View vendors transaction history. Application data showing which check paid a particular voucher and vice-versa. Distribution data shows which General Ledger accounts were affected with subtotals for each G/L account shown at bottom of the report. Output can be directed to the screen, one of any printer, fax modem, email or a networked harddrive on the server.
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E-R Diagram

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Account payable is a strategic , value-added accounting function that performs the primary non-payroll disbursement function in an organization . As such , the AP operation plays a critical role in the function in an organization . As such , the AP operation plays a critical role in the finical cycle of the organization . AP enables an organization to accomplish its objectives by bringing a systematic , disciplined approach to evaluate and improve the effectiveness of the entire payable process . In addition to the traditional AP activities whereby liabilities to third party entities (suppliers , vendors , taxing authorities , etc.) are recognized and paid based on the credit policies agreed to between the company and its suppliers , todays AP departments have taken on much wider roles including fraud prevention , cost reduction , workflow system solutions , cash-flow management , internal controls and vendor (supply chain) financing.
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The profession is unregulated , though there are international standards setting bodies , an example of which is the International accounts payable professional (IAPP) , an association of more than 5,000 members in the United states , Canada , The United kingdom and other countries . As part of its professional standards framework, the IAPP has established a new definition of accounts payable.

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