Accounts Payable
An accounting entry that represents an entity’s obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current liabilities. Accounts payable are often referred to as “payables”. Another common usage of AP refers to a business department or division that is responsible for making payments owed by the company to suppliers and other creditors. Accounts payable are debts that must be paid off within a given period of time in order to avoid default. For example, at the corporate level, AP refers to short-term debt payments to suppliers and banks.
Payables are not limited to corporations. At the household level, people are also subject to bill payment for goods or services provided to them by creditors. For example, the phone company, the gas company and the cable company are types of creditors. Each one of these creditors provide a service first and then bills the customer after the fact.
If people or companies don’t pay their bills, they are considered to be in default which results in maligning the name of the organization or the individual but thanks to HoneycombERP® Finance Management system; every one’s prestige is safe and well-guarded. With AP module; organizations can better manage their payables with enhanced tracking and accurate and current status reporting of the payable situation. This gives greater control to the managers and the management can plan in a more efficient manner how to pay-off the amounts, safeguarding the organization’s interest.
Module Features
Complete Supplier Profile
HoneycombERP® AP module maintains a detailed and comprehensive profile of all the suppliers. Supplier Profile Management enables to manage key profile details used to establish or maintain a business relationship with the selling company. This profile information includes address information, names of main contacts, business classifications, banking details, and category information about the goods and services provided.
Classification of Suppliers (Local, Foreign, Material Wise etc.)
With HoneycombERP® AP organizations have better control and visibility of their suppliers as every supplier can be categorized according to its supply base. This makes tracking of records very easy later-on, alongside that separate ledgers can be generated for each classification of customer thus painting clear and precise picture of the finance. Important decision can be taken later on with the help of the information available in hand. Managers can browse the list of goods and services and select all those that apply to their business. Additionally managers can use this information to help generate supplier invitation lists for RFQs or for reporting.
Integrated Costing and Procurement
Procurement is the acquisition of goods, services or works from an outside external source. It is favorable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. With HoneycombERP® FAMS and HoneycombERP® AP module; as the procurement process completes i.e. the goods are stocked in; the values of inventory/stores is adjusted automatically. Additionally for every invoice generated against a PO; financial effect is posted automatically by the system by creating a well formed JV, charging appropriate chart of accounts. This gives a standout advantage to this solution as there is strong and clear cut visibility of the whole process i.e. from request to invoice and financial impact. Management is always at ease and can easily pin point kickbacks if any. All this is only possible through the strong visibility, tracking and control provided by HoneycombERP® FAMS and HoneycombERP® AP module.
Multiple Currency Invoices with Exchange Rate
HoneycombERP® AP brings greater flexibility by providing options to generate invoices in multiple currencies. HoneycombERP® FAMS is equipped to handle as many currencies the organization is dealing business in. While generating invoices, same standard is followed and each foreign currency invoice’s value is automatically converted into equivalent local amounts by making use of exchange rates fed to the system. The system records both the foreign and its local equivalent thus making it easier for the managers to track any specific invoice / record if desired. This eases up the purchasing process from foreign suppliers to the greatest extend.
Different Delivery and Payment Terms and Conditions
Using HoneycombERP® FAMS, all Commercial Terms like EXW, CPT, CIP, FOB etc. are handled and the system manages all the pertinent information and keeps all the necessary details. Additionally, payment terms like Cash in Advance, LC, and Drafts etc. are also managed in an ingenuous manner.
Credit/Debit Memos
A credit note or credit memorandum (memo) is a commercial document issued by a seller to a buyer. The seller usually issues a credit memo for the same or lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions. A debit note or debit memorandum (memo) is a commercial document issued by a buyer to a seller as a means of formally requesting a credit note. A seller might also issue a debit note instead of an invoice in order to adjust upwards the amount of an invoice already issued (as if the invoice is recorded in wrong value). HoneycombERP® AP module houses both memos and their detailed reporting as well, enabling the managers to achieve superior business control.
Multiple Payment Methods
No financial solution can succeeded unless it offers ease of use and provides answers to situations occurring on frequent basis. HoneycombERP® FAMS does many steps ahead and not only provides the essentials, rather is equipped to manage complex and rare scenarios as well. Same is the case with options for payment receiving, using HoneycombERP® FAMS payments from any means for instance cheques, cash, wire transfer, online cash deposits etc. can be managed with ease.
Advances to Suppliers
Any type of payment that is made ahead of its normal schedule, such as paying for a good or service before you actually receive the good or service is termed as advance. No financial solution is complete without management of advance payments to suppliers; and in HoneycombERP® AP module; advances to suppliers is managed in a simplistic yet comprehensive manner. Each supplier’s ledger is maintained in detail and at any time the management can have the updated and the latest figure of the advances given to the suppliers, that too categorized according to the nature of the goods /service provided.
Leasing and Loan Purchase Management
Organizations sometimes do purchase items / goods /services on Lease or Loan and pay when they are satisfied or have sufficient revenue to clear the payment. This relates to the management’s decision as on what terms the management wants to purchase certain items. With HoneycombERP® FAMS and AP module; complete logging of such purchase is available and updated picture is always available in hand to the manager thus giving him the comfort and control. Additionally HoneycombERP® FAMS module provides reports that make the life of any manager very easy, by allowing to generate any pertinent report any time by using the report widgets.
Partial Payment against Single Invoice & Single Payment against Multiple Invoices
Partial receiving against invoices is a common practice in the business world. Organization often clear payments in installment and managers generally find is embarrassing and cumbersome activity to maintain and manage multiple payments against a single purchase. Well, with HoneycombERP® FAMS there is no hassle at all, as all these details and multiple transactions are handled by the system itself. The system keeps track of the invoice against which the payment is made, and at every point in time the manager can easily find out the status of a payment against that particular invoice. Not only this but the HoneycombERP® FAMS can also manage a single receiving against multiple invoice. That gives HoneycombERP® FAMS advantage of the extreme degree and thus is no doubt a complete and comprehensive system for any business.
Account Payable Statements Generation
To any business, the information about the current payables is always of essence as the management must know how much the organization needs to pay to its suppliers. With updated information the management can take adequate decisions and better plan their cash and payment schedule. Critical business decisions are dependent on the accuracy and timely availability of this information and using HoneycombERP® FAMS; this information is always a single click away, and the management can have the latest and accurate position of the business’s payables.
Comprehensive Supplier Ledger
HoneycombERP® FAMS records each and every transactions in a way that at any time valuable information can be generated in no time and with great ease and control. Detailed and comprehensive supplier ledgers are an example of the power of HoneycombERP® FAMS, where every transaction with logging details is shown, alongside options to group & sort information in the way best suiting the custom needs of the organization. With HoneycombERP® FAMS, simply the managers have superior control over all the segments of the payables.
Aged Payables Statement
The aged creditors or aged accounts payable report is really useful for monitoring which supplier you owe money to. With HoneycombERP® FAMS accounts payable aging tool; it can be easily found out that to whom the organization owes money, how much and for how long. Accounts payable aging is a critical management as well as an analytic tool that helps determine what suppliers must be paid first in order to avoid any credit or supply problem.
Fiscal Calendar Period Rolls
On fiscal year closing, balances are to be adjusted and certain amounts are carried forwarded to the next calendar year. With HoneycombERP® FAMS, all this is done automatically by the system as the system calculates the sums of the required amounts and properly places each value at its place. Thus a lot of man hours are saved and the management can focus on activities more fruitful to the business.
Sales, Excise and Other Taxation & Reporting
HoneycombERP® FAMS provides reports that make the life of any manager very easy, by allowing to generate appropriate reports any time by using the report widgets. Report widgets are capable of generating multiple reports and offer several criterion selection. Instant reports mean real time picture and better visibility to the management, any time. HoneycombERP® FAMS houses sales, Excise, Taxation and other reporting options with respect to payables.