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

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 means maintaining 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 EPayables) 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 to accomplish 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 more companies 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.

1.2OBJECTIVE To Study the Accounts Payable system of Reliance Industries Ltd. and generating an idea 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 Limited Patalganga.

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