Managing invoices and payments to vendors or suppliers is part of the accounts payable workflow.
A typical workflow consists of the following steps:
Receipt of Invoices:
The accounts payable team receives invoices from vendors or suppliers.
The team verifies that the invoice is accurate, complete, and matches the purchase order and receipt of goods or services.
The invoice is then sent for approval to the appropriate manager or department, based on the company’s approval hierarchy.
Once approved, the invoice is recorded in the company’s accounting system, which updates the accounts payable balance.
The payment is then scheduled and made to the vendor or supplier.
Finally, the accounts payable team reconciles the payments made with the recorded invoices and updates the accounting system accordingly.
This workflow helps businesses ensure that they maintain accurate records of their expenses and payments, as well as paying their vendors and suppliers on time, which in turn helps to maintain good business relationships with them.