Crash Courses · Basic
Accounts Payable (AP)
Manage vendor bills, payment cycles, and ensure the business pays the right people the right amounts on time.
12 min read+150 XP on completionCert: Accounting & Bookkeeping
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Accounts Payable (AP)
The Full AP Cycle
1. Receive Vendor Invoice
2. Verify: 3-Way Match (PO + Delivery Receipt + Invoice)
3. Post the Bill in QuickBooks
Dr. Expense Account / Cr. Accounts Payable
4. Schedule Payment per Terms (Net 30, etc.)
5. Process Payment (ACH, check, credit card)
Dr. Accounts Payable / Cr. Cash
6. Mark as Paid in QuickBooks
7. File Invoice with Payment Confirmation---
3-Way Match: Your Fraud Shield
| Document | What It Confirms |
|---|---|
| Purchase Order (PO) | Company authorized this purchase |
| Delivery Receipt | Goods/services were actually received |
| Vendor Invoice | Amount matches what was ordered and received |
If any of the three don't match ?' hold the payment* and flag for review.
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Payment Terms Decoded
| Term | Meaning |
|---|---|
| Net 30 | Full payment due within 30 days of invoice date |
| 2/10 Net 30 | 2% discount if paid in 10 days; full amount due in 30 |
| Due on Receipt | Pay immediately |
Smart timing: Pay on day 28 of a Net 30 invoice. Preserve cash flow while staying current.
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AP Aging Report
Anything in 61-90+ columns is a risk. Escalate bills past 60 days immediately.
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Preventing Duplicate Payments
Before processing any payment:
- Vendor name matches your records exactly
- Invoice number has not been entered before (search QuickBooks first)
- Amount matches the PO or contract
- Date is not suspiciously old (>90 days = investigate)
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In QuickBooks: Entering and Paying a Bill
Enter: + New > Bill > Select Vendor > Enter date, due date, line items > Attach PDF > Save
Pay: + New > Pay Bills > Check the bill > Select payment account > Save
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In this module
Accounts Payable (AP)
Purchase Order (PO)
3-Way Match
Payment Terms
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