Section 6 Introduction
(Last Modified on October 12, 2010)
Accounts payable are created as a part of the normal procurement process. Budgeted funds are encumbered when a purchase order is issued for goods and services. When the goods or services are received, the encumbrance is liquidated while accruing expense, by debiting expense and crediting accounts payable. The payment process will debit the accounts payable and credit cash in bank.
This section provides a brief summary of rules and regulations affecting accounts payable at ÐÔÊÓ½çAPP (USG) institutions. Each institution must comply with regulations regarding encumbrances, expenses, payments, and credits.
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