What evidence proves that goods or services were received?
Which mismatches may pass within tolerance?
Who can change supplier and bank data?
How are credits, advances, and disputed invoices reconciled?
Meaning in day-to-day work
What does it mean in practice?
Accounts payable represents approved amounts owed to suppliers but not yet paid. A reliable AP process connects supplier master data, purchasing, receipt evidence, invoices, approvals, due dates, payments, and the general ledger.
Practical example
A buyer issues a purchase order, a warehouse records receipt, and finance receives the supplier invoice. The system compares the order, receipt, and invoice before approving the liability and scheduling payment.
From start to close
How does the workflow operate?
1
Capture the supplier invoice and verify legal and commercial details.
2
Check duplicates and match the invoice to order, receipt, or service evidence.
3
Resolve quantity, price, tax, currency, and term exceptions.
4
Approve according to amount, entity, cost center, and policy.
5
Schedule payment, record settlement, and reconcile the supplier and ledger balances.
Recommended controls
What protects workflow quality?
Controlled supplier onboarding and bank-detail changes
Duplicate invoice and duplicate payment detection
Two- or three-way matching with tolerance rules
Approval limits and segregation of invoice, approval, and payment
Common mistakes
What should teams avoid?
Paying from an email attachment without receipt or approval evidence
Changing supplier bank details without independent verification
Leaving unmatched credits and old open items unresolved