Accounts Reconciliation Blog

Credit makes the business world go around. You give credit to get customers and get credit to expand your inventory. It’s a game of balance. The credit you extend to your customers should not exceed your maximum credit from your supplier. Otherwise you’ll get in deep trouble. A 30 day credit doesn’t necessarily mean you’ll get paid on the 30th day. Often that’s when the paperwork begins. That’s why it’s important to know and understand accounts payable flowchart.

Here is the accounts payable flowchart that we follow in our company. First we look for the supply request followed by the cost estimates. Then we make sure that the purchase order match the cost estimates and supply request. After that comes the sales invoice along with the delivery and the delivery receipt. From the sales invoice we can see the payment terms. Only when the payment terms are verified will the payment process begins.