Account Payabel Sysytem-bis

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ACCOUNT PAYABLE

SYSTEM

Developed By:-Parsana Ankit. (080450116206)

Pandorwala Pritesh. (080450116205)Patel Brijesh. (080450116028)

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Account PayableIntroduction

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 acceptedthen it will give to the account prepare a vender product. Then venders

payable cheque is inputted to purchase department.


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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.

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 thenyou 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.

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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 systemaccepts 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.

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Definition of System

An accounting entry that represents an entity's obligation topay 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.


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The accounts payable system

Input function

Accept purchase order

data

Accept supplier

invoice data

Accept receivingnotice data

Processing function:Check purchase order,

supplier invoice, receiving

notice data

check payment due date

compute total accountpayable

Output function: Produce supplier

payment

Produce accounts

payable report

Storage function:

update account payable

data Access account

payable data

Access supplier

master data6


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Need of a computerized system

Assuming that existing system is manual. The existing systemmaintains 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 whataction was performed by which user and when.

Various tasks are automated, so it reduces manual performance.

The reports are generated automatically without any efforts. 7


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Feasibility study

A feasibility study is undertaken to determine thepossibility

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 getrough assessment of whether feasible solution exists.

This is essential to avoid committing large resources to a

project and then repent on it later.

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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.9


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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, oneof any printer, fax modem, email or a

networked harddrive on the server.

PAYABLES INQUIRY

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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 acritical 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 , workflowsystem 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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Account Payabel Sysytem-bis

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