Accounts Payable Template

A guide to handling outgoing payments and maintaining healthy vendor relationships.

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Accounts Payable Template

Accounts Payable Checklist

💡 Tip:
When processing accounts payable, make sure you’ve covered all of the below key elements:

💲Invoice Verification:

Verify the accuracy and legitimacy of incoming invoices with the necessary information: 

  • Vendor details
  • Description of goods or services
  • Quantities
  • Prices
  • Payment terms. 

📝 Recording and Coding:

  • Record invoice in accounts payable ledger
  • Assign appropriate expenses codes/ account numbers

✅ Approval and Authorization:
Obtain approvals from:

  • Department head
  • Finance Manager
  • CFO

🧾 Payment Processing:

  • Conduct payment checks
  • Prepare payment
  • Execute payment

⚖️ Reconciliation:

  • Verify invoices have been recorded properly
  • Check payments are applied accurately
  • Resolve outstanding balances
  • Address discrepancies with vendors

Accounts Payable Best Practice

7 Best Practices in Accounts Payable

  1. Establish a system for tracking your Accounts Payable process.
  2. Set up an automated payment schedule where possible.
  3. Pay suppliers early in return for discounts.
  4. Monitor and review data regularly.
  5. Communicate with suppliers where payment is delayed.
  6. Check for errors and duplicates.
  7. Keep track of disputes and resolutions.

Accounts Payable KPIs

If you’re focusing primarily on processing invoices as fast and as cheaply as possible, then you’re not treating accounts payable as the strategic opportunity that it is!

Let’s look at the six most important KPIs every Accounts Payable department should be measuring;

  1. Days Payable Outstanding – Everyone wants to increase DPO — why tie up working capital unnecessarily, when it could be growing interest in your bank account?
  2. Paid on Time Rate – But pay too late, and you might get fined so it’s important to track this.
  3. Cash or Early Payment Discount Realization Rate – Imagine you could earn cash back just for early payment. Now that’s easy money for your organization!
  4. Duplicate Payment Rate – Obviously nobody wants to pay twice but having a way to track this automatically will ensure that you’re not leaving money on the proverbial table.
A laptop displaying a graph that is used for employee training and documentation purposes, placed on a table.

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