Paying Vendor statements by the due date

Paying statements provided vendors by the due date is an important function within the accounts payable function. Paying statements by the due date allows the organization to take advantage of discounts and record transactions in the correct period. There is nothing more frustrating than continuously recording invoices in the wrong month. The impact is double expenses in some months and another month not recording enough expenses resulting in posting incorrect net profits from one period to another.

The most significant function for the AP Clerk as the gate-keeper of expenses is to record invoices in the correct accounting month, reconciling statements of all recorded transactions and paying statements by the due date. If accounts are not paid by the due date, the vendor may lower credit limit, report conflicting information to other potential creditors or possibly refuse to sell new products or services to the dealership. My favorite phone calls are not the one that usually the Office Manager wants to transfer to me because we forgot to pay the only parts department in town that the parts department intends to use. The conversation gets better when the only organization in the city refuses to sell to our dealership until they either have a check in hand or a credit payment by phone.