What is full form of AP?
AP FULL FORM- Account Payable
Account payable is a amount that a company have to pay to the client because it have received the goods or services on credit. Generally, account payable is the amount that a company has to pay to its creditors. so it mean this account is related to creditors of a company.After knowing AP full form , now we are going to discuss about process of ap.
Process of ap:
- Quotation: first of all, buyer receives the quotation from the seller. Quotation is a document that contains the detail information about price of the product. So here buyer can compare the quotation of different seller and can decide which is best seller for his produce. In this way, company can save money by comparing price and quality of the products.
- Sale order: it is second step in the process of account payable cycle. Sale order is a document that is used by the seller to confirm about the selling price, quality and term and condition of goods. Normally, it is issued by the seller to his buyer.
- Invoice: it is third step in the process of account payable cycle. After confirming the price and quality of goods, the next step is to create an invoice by the seller. Here, company create invoice according to predetermined sale order and buyer receives the invoice.
- Goods received Note: after receiving the invoice, the buyer receive all the goods or service for which he had placed the order.
- Account payable: it is final step in the process of account payable cycle. Here, company receives the amount for which he have given service or sold goods to other party. you many like other ap full form that are as follows:
Other AP full form: