AR/AP/GL

Hi Kalyan,

AR is Accounts Receivable

AP is Accounts Payable

GL is General Ledger.

In Bank, there are two counter, one is for Cash Receipt and another one is for Cash Payment.  It is like that in company, all receits will be taken care by Accounts Receivable=AR.  As like all payments will be taken care by Accounts Payable=AP.  General Ledger will look after all the other functions like Auditing, Verification, Closure of Books, and Reporting.

Thanks,

J. Asokumar

Yes ASOKumar J is right. Today most of good companies using ERP as their accounting software. In this they have assigned different Functions to different  sub-departments like AR/ AP /GL. No doubt they are in great demand in today's scenario as the demand for ERP is increasing day by day.

Thanks for the Replies Sir....

Basically, i want information regarding how they are accounted for.Please give me any examples of it.

Well it depends upon the software the company is using. But it similar to any other accounting software there is customised designed screen for each process. The user/employees posted the entry on this and that entry linked to all other places by the accounting softwares or updated immediately. e.g. if you have received payment from the customer you posted that entry via AR process and immediately that will linked to all places like change in balance sheet, cash/bank balance and decrease in amount of debtors etc.

Accounts Payable related to Creditors ...like Purchases of Ram material ,Utility Bills(electricity,water)& any other kind of Purchase is recorded...i have worked in SAP...in Genpact....in AP we need to process the Invoices & make it read for payment...because some time there is Price or Qty Diffrences ..many other related thiing is Vendor Master,Vendor Reconciliation...its like handling the whole Creditors of the Co....whether Trade or Non Trade

Could you please elaborate,i m stressing the topic as i m more interested to what actually it is and how the accounting and other processes are done.

ex: A/P , this is for Accounting of Purchases and expenses and payments to respective vendors

A/R is for accounting of sale invoice and applying cash against money received from debtors

G/L is basically for passing correction entries , that cant be routed through A/P and A/R.  

Ok then.what should be my answer if asked in an interview.I dont have prior knowledge on this so asking this straight away.

Thanks for the replies.

one more thing in AP ...like if u process 100 invoices they are due after 5 days...their is Payment Run lets say evry Tuesday...so u need to know how payment is done through SAP

Fixed Assets Accounting,Reporting,Tax....their are very diffrent from Traditional Tally

Thanks prateek,for your valuable answers and Information....What you Said will work fine in an SAP environment.but what about the general accounting companies in which there will be no SAP installed.