Account payable & Account Receivable

Accounts Payable!
When a company purchase goods and services on credit for a particular time so it will you account payable. It displayed as a liability on the balance sheet of the company and accounts for the amount paid by the company to its business partner. This depends on the liability of the legal documents build debt.

The company products ( or services ) and order are received for the purchase of credit, for example, before paying's the company product. Suppliers ( or sale) products of the credit are know as creditor. Of the company has not received the sign of the promotion of the products, the company or account legislation will be recorded in that account statement ( or the transaction will pay ) responsible for paying.

The process of payment of accounting requires considerable detail consideration to ensure that legitimate and accurate values are entered in the accounting system. Most of the information you need to analyze is in the following documents:

Order issued by the company 

Companies issued received report 

Supplier company bill's 

Contacts and the other agreement 

Account payable is the amount paid by the business to purchase goods or credit services from the supplier or the seller. Account receivable are the amount of the company has the right to collect products and credit services for sale to customer. Account payable are the liabilities an account receivable are the assets.

The supplier or seller sends a invoice to the company receiving the products and / or the credit services. When a bill or account is received, the customer calls the invoice bill. Invoice from each vendor are sent to account payable for processing.

Account Receivable!

When a company sold goods and services on credit for a period so it will called you account receivable. Account receivable is that the cash than the organization includes a right to receive as a result of it had provided customer with merchandise and or services. Account receivable is recorded as current assets on the balance sheet as it is generally an annual turnover in cash.

An account due age analysis, additionally referred to as the debtor book is split in classes for current, thirty days, sixty days and ninety days or longer. This analysis or reports is usually referred to as an aged balance. Customer area unit generally listed in alphabetic order or by the quantity outstanding, or in live with corporate chart of account. Zero balance don't seems to be something shown.

The account receivable outstanding represents the invoice sent to the customer of the company. Money is attributed to the company, so it is an asset, but money has not been collected yet. it is good enough for more companies to recover their obligation.

The account receivable is the money that the company has the right to receive in order to provide products and services to customers. Foe example, if a product from a truck manufacturer is delivered to the customers on June 1 and payment is made to the customer within 30 days, the maker receive an account.