Share capital
Financial Dictionary — Equity & Capital
Definition
The capital is the company's issued shares and a cash or other cash-denominated consideration has been placed.
Detailed Explanation
Share capital is the amount invested by shareholders in exchange for issued shares (par or stated value plus any related considerations, depending on structure).
Common Uses
- Used in the purchase-to-pay cycle to validate invoices, approvals, and supporting documents.
- Used to strengthen internal controls over purchasing and supplier payments.
- Used to strengthen internal controls over purchasing and supplier payments.
Practical Example
- Example: Before payment, the AP team applies **Share capital** to confirm the invoice matches the approved purchase documentation.
Why This Term Matters
- Why it matters: Prevents incorrect/duplicate payments, reduces fraud risk, and improves accuracy of payables and expenses.