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What is the difference between a cash payment and a payment made to a vendor or contractor through AP and why is one better than the other?
The difference between a cash payment and a payment made to a vendor or contractor through accounts payable is as follows: In a cash payment, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and hand over the cash to the vendor (by decreasing the cash asset account). For the vendor, they recognize the revenue upon completion (by increasing the revenue account) and move the cash onto their balance sheet (by increasing the cash asset account). In an accounts payable transaction, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and acknowledges the debt (by increasing the accounts payable liability). For the vendor, they recognize the sale (by increasing the revenue account) and acknowledges that the company using their services owes them for the work that they did (by increasing the accounts receivable account). Time eventually passes for the accounts payable transaction and the company that used the services of the vendor sends payment to the vendor (by decreasing the cash account) and acknowledges that the debt is paid (by reducing the accounts payable liability). The vendor receives payment in the mail (by increasing the cash asset account) and acknowledges that the debt is paid (by reducing the accounts receivable asset). The key difference is which party is providing the cash flow. For a cash payment, the transaction is best for the vendor because they are receiving cash immediately. For an AP transaction, the service user is better because they held onto cash for some period of time.
What is the journal entry payment to the vendor?
Debit accounts payableCredit cash /bank
Are employers required to withhold payroll taxes for vendors?
A taxpayer only needs to withhold payroll taxes on employees. A vendor would not typically be an employee of the company buying the goods or services.
Journal entry for Payment of credit purchase by a Cheque?
BY VENDOR Dr TO BANK Cr
How do you collect invoice payment delay?
i have made the client payment very late i want to apologize by writing letter to the vendor on behalf of my management
What does COD refer to regarding a commercial credit reference from a vendor?
COD stands for "Cash on Delivery" in the context of a commercial credit reference from a vendor. It means that the vendor requires the buyer to pay for the goods or services at the time of delivery, rather than on credit terms. This is a way for the vendor to ensure immediate payment and reduce the risk of non-payment.
What is the difference between a cash payment and a payment made to a vendor or contractor through AP and why is one better than the other?
The difference between a cash payment and a payment made to a vendor or contractor through accounts payable is as follows: In a cash payment, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and hand over the cash to the vendor (by decreasing the cash asset account). For the vendor, they recognize the revenue upon completion (by increasing the revenue account) and move the cash onto their balance sheet (by increasing the cash asset account). In an accounts payable transaction, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and acknowledges the debt (by increasing the accounts payable liability). For the vendor, they recognize the sale (by increasing the revenue account) and acknowledges that the company using their services owes them for the work that they did (by increasing the accounts receivable account). Time eventually passes for the accounts payable transaction and the company that used the services of the vendor sends payment to the vendor (by decreasing the cash account) and acknowledges that the debt is paid (by reducing the accounts payable liability). The vendor receives payment in the mail (by increasing the cash asset account) and acknowledges that the debt is paid (by reducing the accounts receivable asset). The key difference is which party is providing the cash flow. For a cash payment, the transaction is best for the vendor because they are receiving cash immediately. For an AP transaction, the service user is better because they held onto cash for some period of time.
Why do you need document splitting in sap fico?
Sometimes we are doing a payment to vendor from the headoffice. And assume that there are several branches and made a payment to vendor but that is not listed into branch GL account that is why we required splitting for zero balancing. A Parent company B branch C branch | | | | | | paid to vendor Paid to vendor Paid to vendor 5000 5000 5000 A GL Account vendor A/c 15000 To A A/c 5000 To B A/c 5000 To C A/C 5000
How many days past the billing statement must an account be before the travel card vendor cancels it?
126 days
How many days past the billing statement date must an account be before the travel card vendor cancels it?
126 days
What is the definition of Vendor management?
Vendor management is a process that helps an organization onboard vendors and manage the suppliers. A vendor can be an individual or company. The terms supplier and service provider are also alternatives to the term vendor. A business could have a few or many different vendors, each with different terms and conditions. Vendor management is the term used to describe all of the activities the customer organization should perform, so it can obtain the best value from its vendor arrangements. These activities including researching the IT marketplace for products and services, sourcing and selecting vendors, obtaining quotes, negotiating contracts, managing relationships, evaluating vendor performance, managing deliveries of products and services, and paying the vendor for them. The vendor management activities and the level of management required for each vendor will vary, according to the charateristics of the vendor and what products and services it supplies. To be effective vendor management requires specific skills, allocated time and sufficient resources.
You owe 690.00 to a food vendor should you pay a collection agency?
No pay the vendor. If you pay the collection agency they will extract a fee from the payment and you will still owe the vendor
What is a vendor lock-in?
makes a customer dependent on a vendor for products and services, unable to use another vendor without substantial switching costs.
What is vendor lock In?
makes a customer dependent on a vendor for products and services, unable to use another vendor without substantial switching costs.
What is a vendor lock in?
makes a customer dependent on a vendor for products and services, unable to use another vendor without substantial switching costs.
What is vendor lock-in?
makes a customer dependent on a vendor for products and services, unable to use another vendor without substantial switching costs.
What is the journal entry payment to the vendor?
Debit accounts payableCredit cash /bank
