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First an intend preparation by user department.Then commercial department makes an order to the supplying company, make purchase order, then supplying company supplies the material, then user comapny checks the quality and certification is made.Then the material is given to stores department for making receipt and purchase voucher in suppliers account.Then the user company makes the payment to the supplying company.Then scrutiny reconcliation and update and incororated in General ledger.This is the cycle to my knowledge.Thanks for inviting.
Internal Purchses Requisition..........Quotation received from different suppliers........Supplier Selection.........Purchase Order Delivered..........Goods Received Note..... Match GRN with purchase order......Receive Invoice....Match with GRN......Pay / create Liability.
The full AP cycle is the cycle from Requisition -> Supplier selection and Order Placement -> Receipt of goods/service and booking thereof -> Matching of invoice to order and receipt to create the liability to the supplier -> payment to supplier with transmission of a remittance advice. Supplier qualification is beyond the AP cycle. Normally there is segregation between the ordering, receipt and invoice/payment processes.
The full cycle of accounts payable entails inspecting payment documents, approving payment, issuing checks and recording payment information.
