What Is Full Cycle Accounts Payable?

Aicha's answer is incorrect. Full cycle accounts payable refers to the process of verifying the vendor's original invoice, verifying the purchasing companies purchase order and receiving slip, preparing and running a check for the vendor, mailing the check to the vendor if all information is correct, and finally keeping proper record of transaction.

Aicha is thinking of the accounts payable clearing account which is the liability account used to record the value of whatever has been purchased, but has not yet been invoiced. For example:

For a company that distributes some type of inventory:
A purchase order for 1000 is issued by purchasing company, vendor then ships 1000 worth of inventory to purchasing company and purchasing company receives inventory with packing slip, but the purchasing company has not yet received the invoice from the vendor. The proper entry would be:

Inventory 1000
AP Clearing 1000

Then when the invoice is received by purchasing company:

AP Clearing 1000
AP 1000

Hope this helps.

The full cycle accounts payable is an accounting term that refers to the amount that arises after receiving of services. This amount is added to the accounts payable section till the accounts are cleared. It is basically a liability and it comes under the current liability head of a balance sheet.

Full means of account

The full cycle is from point A to point Z!

A full cycle accounts payable is the amount that arises after receiving services. The amount adds on to the accounts payable until they are cleared. Its status is a liability and comes under the Current liabilities section of a company's Balance sheet.