The accounts payable (AP) process involves the entire lifecycle of a company's payable transactions, from

receiving an invoice to making the payment. Here's an end-to-end description of the typical accounts
payable process:

1. **Receipt of Invoice**: The process usually starts when the company receives an invoice from a
vendor or supplier for goods or services rendered.

2. **Invoice Verification**: Upon receipt, the invoice is verified for accuracy, which includes checking for
correct pricing, quantities, terms, and any other relevant details. This step ensures that the company is
being billed accurately for the goods or services received.

3. **Approval Workflow**: Once the invoice is verified, it typically goes through an approval workflow.
Depending on the company's policies and procedures, the invoice may need to be approved by one or
more individuals or departments before payment can be authorized. This approval process helps ensure
that the expenses are legitimate and in line with the company's budget and procurement policies.

4. **Recording in the Accounting System**: After approval, the invoice details are recorded in the
company's accounting system. This step involves entering the invoice information into the system, such
as the vendor name, invoice number, date, amount, and any relevant account coding.

5. **Payment Processing**: Once the invoice is recorded, the company prepares to make the payment.
Payment terms established with the vendor dictate the timing of payment. Common payment terms
include net 30, net 60, or upon receipt. The company may issue a physical check, initiate an electronic
funds transfer (EFT), or use other payment methods such as credit cards or online payment platforms.

6. **Payment Approval**: Before the payment is finalized, it may undergo another level of approval to
ensure accuracy and compliance with company policies. This step may involve a final review by
authorized personnel or management.

7. **Payment Execution**: After final approval, the payment is executed according to the chosen
payment method. The accounting system is updated to reflect the payment, and the transaction is
recorded accordingly.
8. **Reconciliation**: Once the payment is made, the company reconciles the payment with the
corresponding invoice in its accounting records. This ensures that all payments are properly accounted
for and matched with the corresponding expenses.

9. **Vendor Communication**: Throughout the process, there may be communication with the vendor
regarding invoice status, payment timing, or any discrepancies that need to be resolved.

10. **Archiving and Documentation**: Finally, all relevant documents related to the accounts payable
process, including invoices, approvals, payment records, and correspondence with vendors, are archived
and stored for future reference and auditing purposes.

By following these steps, companies can effectively manage their accounts payable process, ensure
timely payments to vendors, maintain accurate financial records, and uphold compliance with internal
policies and external regulations.