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    rangupk's Avatar
    rangupk Posts: 1, Reputation: 1
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    #1

    Aug 7, 2009, 02:19 AM
    Payable Accounting
    Hi
    Accounting of payables can be done in two methods. One through liability creation and the other one through direct payment.
    Is it necessary for direct payment also, should I route the entries to Liability/Pymt control A/c. I think this process only for system convenience and for user's requirements. Is it right.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Aug 7, 2009, 05:29 PM

    Does "direct payment" mean you're just paying the bill immediately when you get it (or within a short time) and not running it through their vendor account?

    If so, it's still a good idea to enter it into the accounts payable through their vendor account, and then pay it back out of there & remove it from the payable, simple for the sake of keeping all the records nice and neat.

    If that's not what you're meaning by "direct payment," then I don't understand the question. I don't see how it's a second way to do payables. All payables are liabilities so there's only one way to do a payable.
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