Accounting Interactions 1
From Wikiversity
Introduction: "Life in the Real World"
Welcome everyone! This text is organized differently from the Basic Principles books which lead off studies in Accounting. The idea was inspired by discussions in actual workplaces which never seem to be covered in classical Accounting courses. The first surprise is that basic Accounting courses begin working with a general ledger. But general ledger operations are always reserved for a senior member of management! Most new Accounting employees spend some time learning one of two "entry level" positions: Accounts Payable and Accounts Receivable.
[edit] Accounts payable
Accounts Payable is the process of describing activity on an invoice using some system of coded cost categories, then posting the invoice into a computer system where it becomes part of a series of checks paid out.
[edit] Accounts receivable
The other common area new employees begin is in Accounts Receivable. Revenue checks paying for goods and services are organized by customer, then entered into a computer system which posts the check to the customer's account. Someone then reviews that customer's account to determine how much, if any, further revenue is still owed by that customer.
