Question

How is the information on the AP Schedule organized? Explain how the schedule of accounts payable is used to make sure bills are paid in a timely fashion.

Answer 1

Accounts payable management is required by entity to manage the payable obligation by the organisation in timely manner. Accounts payable includes the liability or amount owed by the organisation to various suppliers/vendors for the goods and services provided by them. Therefore, if goods and services are received by the organisation without payment (on credit basis) then it will be reported in Accounts payable schedule. Even, if any bill is also accepted for the payment of supplier/vendor is also reported in Accounts payable schedule. Further, if any payment is made for the accepted bills and to suppliers/vendors for the goods and services provided by them will be reduced from the Accounts Payable Schedule.

Therefore, the AP schedule will be managed appropriately to make sure bills are paid in a timely fashion by following the proper accounts payable management system like proper invoicing, proper recording & reporting, timely payment, and adjust the balance of supplier (closure of vendor account). Organisation