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A study on Accounts payable system followed in Reliance Industries Ltd.

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1.1 IMPORTANCE

In day to day life we make payment for different types of services used like bills from the

electric company, cable television, Telephone Company, satellite dish service, newspaper

subscription and other such regular services. Householders usually track and pay on a monthly

using cash, cheque or credit card. It is nothing but Accounts Payable activities meansmaintaining records of bills and making payment on due dates. This means that Accounts

Payable activities are not limited to corporations only but also applicable in our day to day life.

In a business, there is usually a much broader range of services in the A/P file, and accountants

or bookkeepers usually use accounting software to track the flow of money into this liability

account when they receive invoices and out of it when they make payments. Increasingly, large

firms are using specialized Accounts Payable automation solutions (commonly called E-

Payables) to automate the paper and manual elements of processing an organization's invoices.

Accounts payable is a file or account that contains money that a person or company owes to

suppliers, but has not paid yet (a form of debt). When an invoice is received, it is added to the

file, and then removed when it is paid. Thus, the A/P is a form of credit that suppliers offer to

their customers by allowing them to pay for a product or service after it has already been

received.

Account Payable is debts that must be paid off within a given period of time in order to avoid

default. An accounting entry represents an entity's obligation to pay off a short-term debt to its

creditors. The accounts payable entry is found on a balance sheet under the heading current

liabilities.

Accounts Payable is a strategic, value-added accounting function that performs the primary

disbursement functions in an organization. As such, Accounts Payable operation plays a critical

role in the financial cycle of the organization. Accounts Payable enables an organization toaccomplish its objectives by bringing a systematic, disciplined approach to evaluate and

improve the effectiveness of the entire payable process.

SAP

Now days, most of the companies are using SAP ERP software Module.

As SAP in account payable benefits companies in number of ways, so more and morecompanies are showing their keen interest in adopting this system like, Reliance Industries

Limited has adopted. German company has made a SAP system for Reliance Group.

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1.2OBJECTIVE

To Study the Accounts Payable system of Reliance Industries Ltd. and generating anidea to improve the efficiency of the process.

To Study the functions of Accounts department.1.3 SCOPE

This study is carried for a period of 45 days starting from 01/06/2011 to 15/07/2011.

This study concentrates on Accounts Payable in Reliance Industries LimitedPatalganga.

1.4 DATA COLLECTION

This study is carried with secondary source of information the following are the sources for

which data has been collected.

Company manual www.ril.com

1.5 LIMITATION

The company has not provided full information. Most of the people were reluctant to share their opinions.

1.6 CHAPTER SCHEME

1. Introduction

2. Review of literature

3. Analysis and Interpretation

4. Finding & Suggestions