Payroll data is sensitive as companies prefer to keep the salaries and pay rate confidential.

If the company produces its own payroll the system users and operators will be privy to this sensitive data.

To overcome the problem the company prefers to have their payroll processed by an outside vendor.
Control is improved as employees are not processing their own cheques. Confidentiality is maintained.

Accounts payable system maintains a record of payable vendor invoices received and generates the data necessary to make payment at the appropriate time.

It keeps track of data concerning purchase from and payment to suppliers. Prepares cheques in payment of outstanding invoices and produce cash management reports. Computer based accounts payable systems help assure prompt and accurate payment to suppliers.

Accounts receivable system prepares customers invoices and maintains records on the amount due from customers. It produces monthly customer statements and credit management reports

Maintaining records about credit sales. Preparing customer billing statements Controlling both current and delinquent accounts.

Invoicing: it is the process of defining the amount due when a new purchase is delivered and informing the customer. Receiving Payment: from the customer Prepare periodic statements: preparing statements of the amount due from each customer.