Accounts Payable Responsibilities and Duties: The Complete Role-by-Role Guide

Whether you’re hiring or applying, clarity on accounts payable responsibilities and duties keeps invoices moving, vendors satisfied, and audits clean. Use this guide for copy-ready checklists by role, a 7‑step invoice‑to‑pay SOP, essential controls, KPIs with benchmarks, and compliance tasks so your AP function runs smoothly and confidently.

At-a-Glance: Accounts Payable Responsibilities Checklist

If you need a fast, credible checklist to define the role or prep for an interview, start here. These accounts payable duties are the backbone of every efficient AP team:

• Receive, validate, and code invoices to the chart of accounts.
• Match invoices to POs/receipts (2‑way/3‑way match) and resolve exceptions.
• Route invoices via approval workflows and maintain audit trails.
• Execute payment runs (ACH, checks, wires, virtual cards) and capture discounts.
• Reconcile vendor statements and assist with month-end close and accruals.
• Maintain vendor master data and KYC (W‑9s, TIN/OFAC checks, bank validation).
• Enforce internal controls (segregation of duties, approval matrices).
• Track AP KPIs (cycle time, exception rate, STP%, DPO) and drive improvements.
• Support tax and regulatory compliance (1099, sales/use tax; VAT/GST where applicable).
• Communicate with vendors and internal stakeholders to keep the process moving.

Core duties every AP function handles

These fundamentals underpin control, accuracy, and speed in any AP environment:

• Invoice intake (email, portal, EDI) with data capture and duplicate detection.
• GL coding, cost center/project tagging, and tax treatment.
• 2‑way/3‑way match to POs/receipts to prevent overpayment and fraud.
• Timely approvals in line with policy and spending thresholds.
• Payment execution, remittance advice, and payment method optimization.
• Reconciliations (vendor statements, bank) and aging review.
• Documentation retention and audit readiness.

What Is Accounts Payable? Scope and Where It Fits in Procure-to-Pay (P2P)

Accounts payable (AP) is the process of validating and paying supplier obligations accurately and on time. It sits within the broader procure‑to‑pay (P2P) cycle, connecting Procurement (who negotiates terms and creates POs), Receiving/Operations (who confirm goods/services), and Treasury (who manages cash and payments).

AP’s objectives are control, accuracy, and efficiency: the right vendor, the right amount, the right timing, and clean financial records. In practice, that means disciplined intake, matching, approvals, payments, and reconciliations—backed by evidence to pass audits.

Example: Procurement issues a PO, Receiving marks items as delivered, AP matches the vendor’s invoice to both, routes it for approval based on policy, then pays via the lowest‑risk, lowest‑cost method. When AP works, cash flow, vendor relationships, and audit outcomes all improve.

The AP Process in 7 Steps (Invoice-to-Pay)

This is your standard operating procedure (SOP) in clear, repeatable steps. Use it to train teams, assess tools, and document your invoice approval workflow.

1) Capture & verify invoice data (OCR/EDI/manual)

Centralize intake (AP inbox, portal, or EDI) and capture data via OCR or direct feeds. Verify supplier, invoice date/number, amounts, currency, and tax.

Action tips:

• Enforce duplicate detection (same vendor + number + amount).
• Validate vendor master data and tax IDs before booking.
• Bounce incomplete invoices back to the supplier with a standard template.
  Takeaway: Clean intake reduces rework and speeds approvals.

2) 2-way/3-way match and coding to chart of accounts

A 2‑way match compares invoice to PO; a 3‑way match adds the goods receipt. Use 3‑way match for inventory/materials and higher‑risk spend; 2‑way can work for services with tight approvals.

Action tips:

• Tolerance settings (price/qty) minimize false exceptions.
• Code to GL accounts, cost centers, and projects with rules or AI assist.
• Flag taxes (sales/use, VAT/GST) correctly for compliance.
  Takeaway: Accurate matching plus coding prevents overpayment and accelerates posting.

3) Exception handling and dispute resolution

Exceptions happen—price variances, missing receipts, wrong quantities, duplicate invoices. Route exceptions to Procurement/Receiving or the requestor with a clear SLA.

Action tips:

• Use structured reasons (price variance, missing PO, duplicate, tax error).
• Auto‑escalate overdue exceptions and log root causes for improvement.
• Document resolutions in the system for audit trails.
  Takeaway: A disciplined exception workflow protects controls without slowing the business.

4) Approval workflow and segregation of duties

Approvals verify business purpose and budget authority. Segregation of duties (SoD) ensures the person who creates a vendor or enters an invoice isn’t the one approving or releasing payments.

Action tips:

• Use an approval matrix based on cost + risk (see examples below).
• Require digital audit trails and timestamped approvals.
• Restrict payment release rights to Treasury or a separate AP approver.
  Takeaway: Good SoD and approvals are your strongest fraud‑prevention tools.

5) Payment run (ACH, checks, wires, virtual cards)

Batch approved invoices by due date and method, verify cash availability, and release payments. Choose methods that minimize cost and risk while capturing early‑pay discounts.

Action tips:

• ACH is low‑cost and secure; checks are costly and fraud‑prone; wires are for urgent/high‑value/international; virtual cards add rebates.
• Send remittance advice to reduce vendor inquiries.
• Apply 2/10 net 30 discounts where ROI > cost of cash.
  Takeaway: Method selection and disciplined runs improve DPO, cost, and vendor satisfaction.

6) Reconciliation (vendor statements/bank) and month-end accruals

Reconcile vendor statements monthly to catch missing credits or unprocessed invoices. Tie to bank reconciliations for cleared payments.

Action tips:

• Record month‑end accruals for received but unbilled costs (GR/IR, open POs, services performed).
• Review AP aging, resolve long‑dated holds, and document cutoff procedures.
  Takeaway: Clean reconciliations underpin accurate financials and a faster close.

7) Reporting, KPIs, and continuous improvement

Track throughput and quality so you can fix bottlenecks and justify automation. Measure cycle time, exception rate, straight‑through processing (STP) %, and discount capture.

Action tips:

• Publish weekly dashboards and monthly KPI reviews.
• Tie root causes to process fixes (e.g., PO policy, supplier enablement, coding rules).
• Pilot automation where exceptions cluster.
  Takeaway: What gets measured gets better—KPIs turn AP from back office to performance engine.

Role-by-Role Responsibilities and Duties

Different titles own different levels of the process. Use these to scope an accounts payable job description or prepare for interviews.

Accounts Payable Clerk: Daily Duties and Responsibilities

• Receive and index invoices; run OCR and verify basic fields.
• Perform initial 2‑way/3‑way matches and route exceptions.
• Apply GL coding templates; tag cost centers/projects.
• Prepare batches for approval and update invoice status notes.
• Process routine vendor inquiries and send remittance advice.
• File and retain documents; assist with vendor statement recs.
• Support month‑end tasks (invoice cutoff, aging cleanup).

Accounts Payable Specialist: Responsibilities and Scope

• Own end‑to‑end invoice lifecycle from capture to payment posting.
• Investigate and resolve complex exceptions and price/receipt variances.
• Perform vendor statement reconciliations and resolve open items.
• Manage vendor master updates with KYC checks (W‑9, TIN match, bank validation).
• Optimize payment method selection and discount capture.
• Prepare AP schedules for close; book accruals with stakeholders.
• Contribute to policy, SOPs, and process improvements; mentor clerks.

Accounts Payable Manager: Responsibilities, KPIs, and Team Leadership

• Lead the AP team; set goals, coach performance, and manage workload.
• Own AP policies, internal controls, approval matrices, and audit readiness.
• Publish KPIs (cycle time, exception rate, STP%, DPO, discount capture) and drive improvements.
• Partner with Procurement, Receiving, and Treasury on P2P effectiveness and cash strategy.
• Oversee system selection and AP automation; coordinate with IT/Finance.
• Ensure compliance (1099/W‑9, sales/use tax; VAT/GST notes) and vendor risk management.
• Present AP results to Finance leadership; support external and internal audits.

Internal Controls and Compliance in AP

Strong controls reduce payment fraud and audit findings without slowing the business. These patterns work across ERPs and company sizes.

Segregation of Duties and Approval Matrices (with examples)

• Separate roles: vendor master maintenance, invoice entry, invoice approval, and payment release should be performed by different people where practicable.
• Example approval matrix:
• Up to $1,000: Department Manager
• $1,001–$10,000: Director + Requestor’s Manager
• $10,001–$50,000: VP/Controller
• >$50,000 or high‑risk categories: CFO + Legal/Procurement review
• Enforce dual approval for new vendors and bank changes.
• Require positive pay or equivalent for checks; payment release by Treasury.
  Takeaway: Document the matrix, configure it in your workflow tool, and test it quarterly.

Tax and Regulatory Compliance: W‑9, 1099, Sales/Use Tax, and VAT/GST Notes

• W‑9 collection: Obtain before first payment; validate TIN via IRS TIN Matching.
• 1099‑NEC: Report nonemployee compensation; furnish to recipients and file with IRS by January 31 (e‑file/paper) each year.
• 1099‑MISC: Furnish by January 31; IRS filing due Feb 28 (paper) or Mar 31 (e‑file). Check current‑year IRS instructions.
• Backup withholding: If no valid TIN, withhold at IRS rate and remit per IRS rules.
• Sales/use tax: Accrue use tax where required when vendors don’t charge appropriate tax; coordinate with Tax/Accounting.
• VAT/GST: Capture supplier VAT IDs, correct tax codes, and maintain invoice evidence; reclaim where eligible. Local rules vary.
  Takeaway: Keep a compliance calendar and align AP, Tax, and Payroll on responsibilities.

Documentation Retention and Audit Readiness

• Retain invoices, POs, receipts, approvals, and payment proofs at least 7 years (or per jurisdictional/company policy).
• Keep W‑9s while the vendor is active and for at least 4 years after last reportable payment.
• Maintain immutable audit trails for key changes (vendor data, approvals, bank details).
• Prepare audit packs: sample selections, policy, approval matrix, and system screenshots.
  Takeaway: If you can’t evidence it, it didn’t happen—store documents where auditors can find them fast.

Tools and Technology: ERP, AP Automation, and AI

Modern tooling compresses cycle time and reduces exceptions. Your responsibilities shift from data entry to exception management, controls, and analytics.

Common Systems (SAP, Oracle, Microsoft D365, NetSuite, QuickBooks, Xero, MYOB)

• ERPs: SAP, Oracle, Microsoft Dynamics 365, NetSuite.
• SMB/accounting: QuickBooks, Xero, MYOB.
• AP automation: platforms that add OCR, e‑invoicing, supplier portals, workflow, and payments.
• Integrations: EDI, supplier portals, and bank/payment gateways for end‑to‑end visibility.
  Tip: Hiring managers often prioritize experience with their ERP plus any AP automation stack.

Automation Features That Reshape Duties (OCR, 3‑way match, STP, anomaly detection)

• Intelligent capture (OCR/ML) for high‑quality invoice data and duplicate detection.
• Automated 2‑/3‑way match with tolerances; auto‑posting for clean invoices (STP).
• AI anomaly detection for outliers (price spikes, duplicate vendors, bank changes).
• Supplier portals for e‑invoicing, status, and dispute resolution.
• Payment optimization (ACH, virtual card) with built‑in controls and remittances.
  Takeaway: As STP% rises, AP roles emphasize vendor enablement, exception analytics, and control monitoring.

KPIs That Define AP Performance (with Benchmarks)

Measure these accounts payable KPIs to manage throughput, cost, and control quality.

Key Metrics: DPO, Invoice Cycle Time, Exception Rate, STP %, Discount Capture

• Days Payable Outstanding (DPO) = (Average AP / Purchases) × 365. Typical range: 30–60 days; align to terms and cash strategy. Improve by term standardization, virtual cards, and disciplined runs.
• Invoice Cycle Time: Invoice receipt to approval/posting. Typical: 8–15 days; best‑in‑class: 3–5 days. Improve with e‑invoicing, auto‑match, and approval SLAs.
• Exception Rate: % of invoices needing manual intervention. Typical: 15–30%; best‑in‑class: <10%. Improve vendor data quality, PO compliance, and tolerance rules.
• Straight‑Through Processing (STP%) = % auto‑approved/posted without touch. Typical: 30–60%; best‑in‑class: 70–85%. Improve with clean POs, accurate GR, and automation.
• Discount Capture Rate: % of available early‑pay discounts taken. Target: >80% of eligible discounts. Improve with faster approvals and scheduled early‑pay runs.
  Tip: Also track cost per invoice and duplicate/payment error rate to round out your dashboard.

Vendor Onboarding and Risk Management

Strong onboarding prevents fraud and tax issues before the first invoice arrives. Treat vendor master data like a controlled asset.

Onboarding Checklist: W‑9, TIN/OFAC checks, Bank Validation, Duplicate Prevention

• Collect W‑9 (US) or local tax forms before payment; validate TIN with IRS TIN Matching.
• Screen vendors against OFAC and applicable sanctions lists; re‑screen periodically.
• Validate bank details with positive verification (micro‑deposits or secure account verification); require a known‑contact change confirmation.
• Check for duplicates (legal name, DBA, TIN, address, bank account).
• Capture payment method preferences (ACH/virtual card) with remittance details.
• Define tax codes and withholding requirements (backup withholding, VAT/GST).
• Require contract/PO link and category coding for approval routing.
  Takeaway: Two‑person review for vendor creation/changes is a must‑have control.

Payment Strategy and Risk: ACH vs Checks vs Wires vs Virtual Cards

Choosing the right payment method reduces cost and risk while improving cash flow.

• ACH: Low cost ($0.20–$1.50 per payment), secure, good for domestic recurring payments. Use where bank validation is strong.
• Checks: High cost ($3–$10+ all‑in) and fraud‑prone. Use only when vendors don’t accept electronic options.
• Wires: Fast/irrevocable; higher fees ($10–$30 domestic; more for international). Use for urgent, high‑value, or international settlements.
• Virtual Cards: One‑time card numbers with controls and rebates (often 1–2%). Use to reduce fraud and monetize payables where accepted.
  Tip: Segment suppliers and set a default method hierarchy: virtual card → ACH → wire → check.

Day-in-the-Life Examples (Clerk, Specialist, Manager)

Seeing the flow helps job seekers and hiring managers visualize workload and handoffs.

• AP Clerk: 8:30–10: Intake/OCR and duplicate checks; 10–12: 3‑way match, code, and route; 1–3: vendor inbox and remittances; 3–5: prep tomorrow’s batches, file docs, assist on statement recs.
• AP Specialist: 9–11: Exception queue triage and variance resolutions; 11–12: vendor calls; 1–2: vendor statement recs; 2–3: accrual prep; 3–5: payment method optimization and discount review.
• AP Manager: 9–10: KPI review and approvals; 10–12: cross‑functional P2P sync; 1–2: audit/control updates; 2–3: coaching/one‑on‑ones; 3–5: automation roadmap and policy refinements.

Hiring and Career: Job Description Templates, Skills, Certifications, and Salary Bands

Define clear roles to hire faster and help candidates self‑assess. Salaries vary by region, industry, and system complexity.

Copy-Ready Job Description Bullets (Clerk, Specialist, Manager

• AP Clerk
• Process and code invoices; perform 2‑/3‑way matches; route approvals.
• Maintain invoice files and audit trails; handle vendor inquiries.
• Support payment runs, remittances, and month‑end close tasks.
• Tools: ERP/AP automation; basic Excel; document management.
• AP Specialist
• Own invoice lifecycle, exception handling, and statement reconciliations.
• Maintain vendor master data with W‑9/TIN checks and bank validation.
• Prepare accruals; optimize payment methods and discount capture.
• Tools: ERP, OCR/workflow, vendor portals; intermediate Excel/analytics.
• AP Manager
• Lead AP team; own policies, controls (SoD, approvals), and audits.
• Publish KPIs; drive process improvements and automation adoption.
• Partner with Procurement/Receiving/Treasury on P2P and cash strategy.
• Tools: ERP suite, AP automation, reporting/BI; change management.

Indicative US salary ranges: Clerk $40k–$55k; Specialist $50k–$75k; Manager $85k–$120k+. Adjust for location, certifications, and system scope.

Skills and Certifications (e.g., CAPA) and Career Path Progression

• Core skills: attention to detail, policy discipline, vendor communication, Excel/data fluency, and ERP/AP systems.
• Control mindset: segregation of duties, approval matrices, documentation quality.
• Certifications: Certified Accounts Payable Associate/Professional (CAPA/CAPP), APM (IOFM), or CPA/CMA for broader finance leadership.
• Path: Clerk → Specialist → Senior Specialist/Lead → AP Manager → P2P/Shared Services Leader.
  Tip: Candidates with automation experience (OCR, workflows, e‑invoicing) ramp faster and lift team KPIs.

FAQ: Quick Answers to Common AP Responsibilities Questions

• What does an AP Clerk do daily? Intake and validate invoices, perform initial matches/coding, route approvals, and support payments and filing.
• What is 3‑way match in accounts payable? It matches the invoice to the PO and the receipt to confirm quantity/price before payment; use 2‑way match for lower‑risk services with strong approvals.
• How do I design an approval matrix? Base on spend thresholds and risk; require dual approvals for new vendors/bank changes; separate invoice entry from payment release.
• What are the best AP KPIs? DPO, invoice cycle time, exception rate, STP%, and discount capture; target 3–5 days cycle time and <10% exceptions with mature automation.
• How do you calculate DPO? (Average AP ÷ Purchases) × 365; improve via standard terms, timely approvals, and payment optimization.
• What’s in a vendor onboarding checklist? W‑9, IRS TIN match, OFAC screening, bank validation, duplicate checks, tax coding, and payment method setup.
• What are AP’s month‑end close duties? Cutoff validation, vendor statement recs, GR/IR review, accruals for received‑not‑billed, aging cleanup, and documentation.
• How does automation change AP responsibilities? Less data entry, more exception analytics, vendor enablement, and control monitoring; STP% becomes a core metric.
• Which payment method is best? Default to virtual cards (rebates) and ACH (low cost); use wires for urgent/intl; avoid checks unless necessary due to fraud and cost.
• Do AP teams handle 1099s? Yes—collect W‑9s, track reportable payments, and file 1099‑NEC/1099‑MISC by IRS deadlines; coordinate with Tax/Payroll for accuracy.

Ready to put this into action? Start with the responsibilities checklist, map your current process to the 7 steps, and set 2–3 KPI targets to hit in the next quarter.