Account Payable Process in SAP ERP :
1.Receive and verify payable documents:
- Three types of payables documents: domestic purchasing with contract, domestic purchasing without contract, and import purchasing.
- Domestic purchasing with contract: the documents include economic contract, purchasing invoice, purchase requisition, goods receipt note, email approved for contract, and approved payment request by authorized persons.
- Domestic purchasing without contract: the documents include purchasing invoice, purchase requisition, goods receipt note, email approved for purchase order, and approved payment request by authorized persons.
- Imported purchasing: When goods arrived at port, payable accountant prepares loan document and pass it to bank accountant to submit to the bank, then deposit to supplier throughout the bank. When goods were forwarded to warehouse, forwarding staff pass all documents including invoices, goods receipt notes, customs declarations to payable accountant to update and monitor the payables.
- With contract that requires payment in advance, the contract and approved payment request must be passed to payable accountant to make payment to supplier
- Payable of overseas suppliers are booked when bank deposit to them
- Payables of domestics suppliers according to purchasing invoice date
- Payment to suppliers based on approved payment requests by departments performing purchasing activities.
- For purchasing advance, the accounts payable are directly offset to the advance amount.
- Purchasing invoice could have multiple payments.
- One payment could be settled for multiple invoices.
- For freight fees, the forwarding staff takes advance to pay those fees.
- For imported goods which not used for outsourcing progress: the forwarding staff prepares the advance request to pay VAT and the import duties within 30 days to avoid penalty of Customs Department. Currently, all value added tax of imported goods are credited because COMPANY still has surplus credited amount carried forward from previous year
- For imported goods used for outsourcing progress, the deadline for re-exporting is 275 days. If COMPANY can not re-export those goods within that time, COMPANY has to pay tax and penalty. The penalty will be calculated on 245 days (275 minus 30 days allowed for delay), then multiplied by the total payable tax.
- Double check goods receipt notes to invoices/bill to verify whether they are matched each other. Invoices which are already paid also marked in this step.
- Reconcile data with tax accounting in value added tax for invoices, vouchers for goods purchased, services rendered
2.Update data of purchasing invoices, payment vouchers
3.Manually synchronize data to keep track of accounts payable.
4.Chief accountant approves payment request, advance request
5.Pass approved payment request to cash/banking accountant to deposit for supplier
6.Prepare the list of invoice report, accounts payable balance
o Reconcile with cash/banking data
o Transfer data to general accountant
- Track payable overdue invoices.
- Track account payables and aging of payable invoices.
- Forecast cash flow in the future based on payable commitment
- Monitor deadline of imported goods for outsourcing progress