What is AP, explain P2P cycle, what is GRN &WHT?

Question

Accepted Answer

AP stands for Accounts Payable. P2P cycle refers to the Procure-to-Pay cycle. GRN stands for Goods Receipt Note. WHT stands for Withholding Tax.

AP is a department responsible for managing and recording all outgoing payments of a company.
P2P cycle is the process of purchasing goods or services, receiving them, and making payments.
GRN is a document used to record the receipt of goods from a supplier.
WHT is a tax deducted at source from payments made to suppliers or vendors.
Example: In the P2P cycle, a purchase order is created, goods are received and verified through a GRN, and then payment is made through AP.

Accepted Answer

Account payable is money owed by a business to it suppliers, it shown as liability on companies balance sheet.

PTP isa end to end process which covered all the steps from initiation of the requirements by a user or a department till the payment to supplier.

GRN;Good receipt note is an internal document produce after inspecting delivery for proof of order receipt...

WHT;Withholding tax or retention tax to be paid to government by the payer of the income rather than by the recipient of the income .

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