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An accounts payable (AP) is a liability for an amount owed to a creditor, usually for the purchase of goods or services.
Consider a buyer who makes a purchase and takes delivery of the goods but does not pay the seller immediately. The seller is, therefore, selling "on credit." As a result, the buyer and seller now have a creditor-debtor relationship. The processing of accounts payable is a core responsibility of bookkeepers. The bookkeeper may issue and monitor purchase orders (which result in accounts payable) and then match them with invoices when they are received. The bookkeeper then codes the invoices with the proper general ledger information and obtains approval for payment. Bookkeepers check to pay the invoices and ensure bills are paid in a timely manner. 

Accounts receivable (AR) are legally enforceable claims for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for.  AR is sort of a mirror to AP. The AR process begins with billing customers for goods or services. Bookkeepers prepare and send invoices to customers and ensure they are entered into the proper accounts in the accounting system. Customer statements are prepared and sent out and bookkeepers often contact customers with past-due invoices to make payment arrangements.

This course focuses on important concepts bookkeepers should be prepared to manage/understand in relation to all the components of accounts payable and accounts receivable. We review the concepts of purchase orders, receipting, payments, billing, collections, and accounts receivable aging.

NOTE: This course is one of a series of courses developed for the Professional Bookkeeping Certification program on Illumeo. The full curriculum of courses will provide you with the ultimate foundation to a career as a bookkeeper.

Learning Objectives

  • Explore the definition and types of accounts payable.
  • Discover examples of how to record various accounts payable transactions.
  • Explore the importance of the supplier relationship.
  • Explore various types of accounts payable metrics.
  • Recognize AP’s role in the financial structure of a business.
  • Identify AP job responsibilities.
  • Explore the definition and types of accounts receivable.
  • Explore accounts receivable payment terms and its relationship to the AR aging.
  • Identify accounts receivable job responsibilities.
Last updated/reviewed: November 28, 2019

Included In Certifications

This course is included in the following Certification Programs:

14 CoursesProfessional Bookkeeping Certification

  1. Bookkeeping Basics - Critical Accounting Terminology and Effective Execution of Concepts
  2. Bookkeeping Basics – Processes and Debits and Credits
  3. Bookkeeping Basics – Accrual vs. Cash Accounting
  4. Bookkeeping Basics – Payroll and Expenses
  5. Bookkeeping Basics – Formation of a Legal Entity and Establishing a Chart of Accounts
  6. Bookkeeping Basics – Utilizing Journals, Subsidiary Ledgers and the General Ledger
  7. Bookkeeping Basics – The Essential Responsibilities of the Bookkeeper on a Daily, Weekly, Monthly and Annual Basis
  8. Bookkeeping Basics – Fixed Assets and Inventory
  9. Bookkeeping Basics – Accounts Payable/Disbursements and Accounts Receivable/Receipts
  10. Management Internal Control Essentials
  11. GAAP Principles, Assumptions and Considerations
  12. GAAP Presentation of Financial Statements
  13. Bookkeeping Basics – Case Study Scenario
  14. Useful Bookkeeping Tools

5 Reviews (21 ratings)Reviews

5
Anonymous Author
This course is excellent. The instructor takes the time to thoroughly explain basic bookkeeping & the processes & roles/duties of the AP and AR teams. She goes through everything slow enough for you to be able to obtain all the information, and she includes examples. The slides that go along with it were very helpful. Highly recommend this course.
4
Anonymous Author
I have acquired a better understanding on the difference between Accounts Payable and Accounts Receivable and what key roles they play in the business environment.
5
Anonymous Author
Thorough presentation of information relevant to the topic, with helpful examples throughout the lecture.
5
Anonymous Author
This is very informative and helpful in knowing the responsibilities of each position
5
Member's Profile
I enjoyed learning the difference between Account Receivables and Account Payables.

Prerequisites

Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  6:50Introduction to Bookkeeping Basics – Accounts Payable/Disbursements and Accounts Receivable/Receipts
  14:33Accounts Payable
  4:12Exercise
  11:11Supplier Relationships and AP Analysis
  5:11AP Process Efficiency
  10:26Accounts Receivable
  16:39AR Payment Terms and AR Aging
  6:07AR Collection Period
  8:38AR Job Responsibilities
  1:30Summary
Continuous Play
  1:25:15Accounts Payable/Disbursements and Accounts Receivable/Receipts
Supporting Materials
  PDFSlides: Bookkeeping Basics – Accounts Payable/Disbursements and Accounts Receivable/Receipts
  PDFBookkeeping: Account Payable and Accounts Receivable Glossary/Index
Review And Test
  quizREVIEW QUESTIONS
 examFINAL EXAM