Accounts Payable: Advice: What does a manager of AP need to know?

Answer 1

1. Needs to know, on a regular basis, how much cash is available for paying bills.
2. Needs to know what vendors will put you on shipping hold if you don't pay them in 30, 45 or 60 days.
3. Needs to know how many checks you have left.
4. Needs to know what general ledger accounts expenses are supposed to be posted to. Should have a working knowledge of all the expense accounts, asset accounts, inventory accounts and accounts payable accounts on the GL.
5. Should know how to post a PO-inventory invoice into the computer system and how to post an expense invoice to the computer system.
6. Should know how to cut checks out of the computer system.
7. Should know who the signatories are.
8. Should know which vendors offer terms, and which terms your company will take.
9. Should know all payments that need to be paid without an invoice and when they should be paid.
10. Should know how to reconcile the A/P aging to the General Ledger.
11. Should know the company procedures of receiving/invoice/check cutting.
12. Should be able to split lease and loan payments properly between principal and interest; and know the corresponding general ledger accounts. Should be able to reconcile all these at month end between the GL and the detail.