What are the four functions of Accounts Payable?

Accounts Payable (AP) is a department that handles a company’s financial obligations to its suppliers and vendors. First, AP is in charge of processing invoices, checking the veracity and accuracy of incoming invoices. Second, it guarantees accurate record-keeping and documentation, preserving a clear audit trail for financial activities. Thirdly, AP oversees payment disbursement, planning and carrying out payments to suppliers in accordance with established terms. Last but not least, AP supports vendor management by establishing and sustaining partnerships, settling disputes, and negotiating terms. Together, these activities guarantee correct and on-time payments, regulatory compliance, and productive vendor relationships, all of which support the business’s overall financial stability and operational performance.

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