Accounts payable - do we owe it to us? What is Accounts Payable?

Any organization operating in the sphere of market economy is peculiar that a certain part of its funds is registered at the expense of accounts payable. In general, it represents a certain legal category, meaning part of the property that is the subject of financial relations between the enterprise and the lender. In this article we will consider what is accounts payable? Should we or us? We also determine how its enterprises are taken into account, why it is necessary to conduct its analysis and what consequences arise as a result of the delay in debt.

Characteristic

The first step is to characterize accounts payable as a legal category for the organization. In fact, that portion of own funds, which is acquired from outside funds, is the payables. The definition of debt states that it is issued for a fixed period and is subject to return. Accordingly, accounts payable after a certain time will have to be covered.

The property of the enterprise consists of both own funds, acquired at the expense of the authorized capital and profit, and debts. Both are inevitable parts of the entrepreneurial process. Accounts payable include not only cash, but also commodity values acquired in a tangible loan. Proceeding from this, we get the answer to the question: "Accounts payable - do we owe it to us?" After all, it is a direct definition of the debt obligation. Accordingly, the enterprise implies its debts to creditors.

The main varieties

The accounts payable of the enterprise are subdivided depending on the characteristics of the creditor. Allocate the following species.

1. Accounts payable to the budget and extra-budgetary funds. In particular, taxes themselves and payments to funds, as well as fines, penalties, forfeits.

2. Accounts payable to employees of the organization. In particular, debts on payment of wages.

3. Accounts payable for goods, works, services to outside organizations, as well as debts for payment of dividends , etc.

Debt for dividends represents a debt to the founders in the payment of their income in the distribution of profits. It is formed due to the fact that at the time of drawing up the balance, the calculated dividends can not be paid. This means that a certain amount falls into the composition of accounts payable.

As a result, you can derive the definition of accounts payable, meaning that the organization:

• Must have a certain amount in favor of individuals or legal entities, formed as a result of financial relationships;
• Has debts in the form of invoices issued for delivery on credit or payment by installments.

Accounting of accounts payable

For accounting purposes, it is customary to separate three types of accounts payable. The basis for this classification is the terms for which the accounts payable are made. In this case, we owe other enterprises, workers and funds on certain conditions. If a deferred payment is agreed with the creditor, then the debt in question is characterized as nominal. In the event that such a delay reaches one year, the debt is recorded as short-term in the bookkeeping. If time passes over this period, the debt grows into a long-term one. There is a nuance here. When a long-term debt begins to exceed three years, and the creditor does not file a claim for its repayment, then it is written off in the account.

The need for analysis

Accounts payable as a legal and accounting concept is of great importance for the effective operation of the organization. Once again we raise the question: "Accounts payable - do we owe it to us?" Let's define the main essence of such a concept, which is the obligation. Hence, accounts payable can directly affect the receipt of profits, the functioning of the organization, bankruptcy. Therefore, the analysis of its formation, repayment and management plays an important role in the whole process of the enterprise's existence.

Consideration of debts to creditors is carried out on the basis of the final figures of accounting, in particular, the balance sheet and the form No. 5. Attached to it. On the basis of the final figures in accounting forms, certain coefficients are calculated, showing what share of liabilities accounts payable, how it affects liquidity and solvency Organization. Quality management is represented by indicators characterizing the timeliness of its repayment.

Overdue debts

When the enterprise did not pay the debt to the creditor within the term established by the contract, and also did not pay the invoice, the accounts payable goes over to the overdue category. In this situation, the borrower, seeking to protect his statutory rights, can seek help from the court. The lender writes a statement of claim and pins all legal documents confirming financial claims to him.

A citizen needs to remember that such a situation will spoil his business reputation and reduce the commercial image in the market of such organizations. In addition, there will be additional costs in the form of judicial fines and sanctions.

Accounts payable for which the limitation period has expired

According to the division of the debts in question, which are more than one year old, the limitation on the duration of the long-term debt is not provided. But it is considered that if the borrower does not file claims on return after three years, the amount in question is written off.

Accounts payable, under which the limitation period has expired, is written-off for each individual liability. The amount is determined by the results of the inventory.

There are no time limits for writing off debts for taxes and fees, as well as fines and penalties on them. The remaining creditors have the right to interrupt the length of long-term debt and demand the return of the entire amount.

As a conclusion, it should be noted that there is a simple answer to the question: "Are we due to payables or to us?" This is done based on the definition of the creditor - the person providing the funds with the return condition. At the same time, debt is not just money on credit. It can be material and economic values, the necessary organizations for an uninterrupted process of financial and economic activity.