How to Write Letter

Accounts Payable Confirmation Letter

Accounting is an interesting and a very vast subject. It is simply impossible to explain about it in few words. We are not here to study about it anyway. But as of now we have stumbled upon this topic related with accounts, let's first try to understand what in accounting does accounts payable is refer to.

Advertisement

Actually, accounts payable is an idea or thought which is used for the money owed by the company to its creditors such as vendors or suppliers. It is the money which is not yet paid to the lenders. The money owe can be for the products purchased from the supplier or for the services taken. Since accounts payable is the money to be paid, it always appears as a liability in the company's balance sheet. To make it simple for you, you can call your telephone, electric, cable and newspaper bill as accounts payable. These are the bills which you pay regularly every month. In business this term it is used in broader sense.

Since accounts payable are the amounts owed by the company to the vendor or supplier, a letter is written to them in order to get confirmation about the amount they owe. The letter states the date, and detail of the transaction the bill is made for. This confirmation letter is then used by the auditor at the time of audit. However, getting confirmation through a letter is very uncommon, since the accounts payable confirmation can be received by others means.

Accounts payable confirmation letter is written on auditor's request by the company to the vendor or supplier.

Accounts Payable Confirmation Letter

To,
ABC Company
4610 Penny Street
Camden, NJ 08102

10 September, 2010

Dear Sir/Madam,

We are requested by our auditor, XYZ Audit & Co. to get your confirmation on the following accounts payable:

Date Invoice Number Item Amount
15 July, 2010 PO-321 Batteries $1200.00
10 August, 2010 PO - 415 Bearings $700.00

Total - $1900.00

If the description given here is a perfect match with your record, please confirm it with your signature and seal in the space below. A return envelope is enclosed with this letter for your convenience.

If there is a difference in the amount, you can inform our auditor about the changes. Also, please give the details on the back of this letter.

Yours truly,
Timothy Clooney
Director
All Time Suppliers

The accounts payable details given in this letter is a perfect match with our record. We hereby attest our signature and seal in confirmation.

Date:
Signature:

Whether you are on the receiving or paying side, you have to maintain record of each transaction to ensure smooth running of your business. Though you can get a confirmation for accounts payable by making a phone call, it is recommended to get it by writing a confirmation letter, especially for audit purpose.

Copyright © 2009 All Rights Reserved | Sitemap