AP Workflow” typically refers to the Accounts Payable Workflow, which is the process of managing and processing invoices received from vendors or suppliers. The AP Workflow includes the following steps:
Invoice Receipt
Invoices are received from vendors in various formats such as paper, email, or electronic data interchange (EDI).
Invoice Validation
The invoices are validated to ensure that they are accurate and match the purchase order or contract terms.
Approval
The invoices are approved by the appropriate personnel, usually based on the amount or type of expense.
Coding
The invoices are coded to ensure that they are allocated to the correct general ledger account and cost center.
Data Entry
The invoices are entered into the accounting system.
Payment
The invoices are paid either through a manual check or electronic payment system.
Reconciliation
The accounts payable ledger is reconciled to the general ledger to ensure that all payments have been recorded correctly.
Reporting
Reports are generated to track and analyze the accounts payable process, including outstanding invoices, aging reports, and vendor analysis.
