100+ Accounts Payable Executive Interview Questions and Answers

Bank reconciliation statement is a document that compares the bank statement with the company's records to identify any discrepancies.

• It is used to ensure that the company's records match the bank's records

• It helps in identifying errors, omissions, or fraudulent activities

• It includes comparing deposits, withdrawals, and bank charges

• Reconciling items may include outstanding checks, deposits in transit, and bank errors

• The statement is prepared regularly to maintain accurate fin...read more

Accounts Payable is the process of managing and paying invoices. Invoices are bills for goods or services received.

• Accounts Payable is a department responsible for managing and processing invoices

• Invoices are bills received from vendors for goods or services purchased

• PO (Purchase Order) is a document issued by a buyer to a seller, indicating the type, quantity, and agreed price for products or services

• Non-PO invoices are bills received without a purchase order, often for serv...read more

A credit note is a document issued by a seller to a buyer, indicating that a certain amount has been credited to the buyer's account.

• It is a document issued by a seller to a buyer

• It indicates that a certain amount has been credited to the buyer's account

• It is usually issued when there is an overpayment or a return of goods

• It serves as a proof of the transaction and helps in reconciling accounts

There are several modes of payment including cash, check, credit/debit card, wire transfer, and online payment.

• Cash

• Check

• Credit/debit card

• Wire transfer

• Online payment

I carefully review all documents to identify and resolve discrepancies.

• Compare the purchase order details with the invoice and receipts to identify any discrepancies

• Communicate with vendors or suppliers to clarify any discrepancies and request corrected invoices if necessary

• Work closely with the procurement team to ensure accurate documentation and resolve any issues promptly

P2P stands for Procure to Pay, which is the process of obtaining and paying for goods and services.

• P2P Cycle involves the steps from requisitioning goods/services to making payment for them.

• A pivot table is a data summarization tool in Excel that allows for quick analysis and comparison of data.

• SAP T Codes are transaction codes used in SAP software to access specific functions or perform specific tasks.

• PO based invoice processing involves matching invoices to purchase orders,...read more

Credit Note is issued by a seller to a buyer for reducing the amount payable, while Debit Note is issued by a buyer to a seller for increasing the amount payable.

• Credit Note reduces the amount payable by the buyer to the seller.

• Debit Note increases the amount payable by the buyer to the seller.

• Credit Note is issued when there is an overcharge or return of goods.

• Debit Note is issued when there is an undercharge or additional goods received.

• Both Credit Note and Debit Note are u...read more

The transaction code for vendor display is XK03.

• Transaction code XK03 is used to display vendor master data.

• It can be used to view vendor details such as address, payment terms, and bank information.

• XK03 can also be used to make changes to vendor master data.

• Other related transaction codes include XK04 for vendor changes and XK05 for vendor block/unblock.

PO invoices are based on purchase orders, while non-PO invoices are not associated with a purchase order.

• PO invoices are generated when a purchase order is created and approved before the goods or services are received.

• Non-PO invoices are not tied to a purchase order and are typically used for one-time purchases or services.

• PO invoices require matching with the corresponding purchase order and goods receipt, while non-PO invoices do not have this requirement.

• PO invoices help ...read more

Trading affects P/L which in turn affects the Balance Sheet.

• Trading activities impact the revenue and expenses recorded in the P/L statement.

• The P/L statement shows the net income or loss for a period.

• The net income or loss is then reflected in the equity section of the Balance Sheet.

• Changes in assets and liabilities also impact the Balance Sheet.

• For example, if a company sells inventory, it will increase revenue in the P/L statement and decrease inventory in the Balance Shee...read more

P2P cycle or AP refers to the end-to-end process of purchasing goods or services, receiving and verifying invoices, and making payments to vendors.

• P2P stands for Procure-to-Pay, which encompasses all activities from requisitioning to payment.

• Accounts Payable (AP) is the department responsible for managing and processing vendor invoices.

• The P2P cycle starts with the identification of a need for goods or services and ends with the payment to the vendor.

• Key steps in the P2P cycl...read more

Vendor reconciliation accounts are assigned in the accounting system to ensure accurate tracking of vendor transactions.

• Assign in the ERP system under vendor master data settings.

• Example: In SAP, use transaction code XK02 to edit vendor details.

• Link to specific general ledger accounts for accurate reporting.

• Example: Assign a reconciliation account for each vendor type, like 'Suppliers' or 'Contractors'.

• Ensure proper mapping to facilitate monthly reconciliation processes.

Accounts payable is the amount a company owes to its suppliers for goods and services purchased on credit.

• Accounts payable is a liability on the balance sheet

• It represents the amount a company owes to its suppliers for goods or services received

• Accounts receivable is the opposite, representing the money owed to a company by its customers

• Accounts payable is typically paid within a certain period, often 30, 60, or 90 days

• Examples of accounts payable include invoices from vendor...read more

2 way matching compares invoice and purchase order, 3 way matching adds receipt of goods to the comparison. GRN t.code is MIGO. P2P cycle is Procure to Pay cycle.

• 2 way matching compares invoice and purchase order

• 3 way matching adds receipt of goods to the comparison

• GRN t.code is MIGO

• P2P cycle is Procure to Pay cycle

The three golden rules of accounting are the rules of debit and credit, which are: 1. Debit the receiver, credit the giver 2. Debit what comes in, credit what goes out 3. Debit expenses and losses, credit income and gains.

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit expenses and losses, credit income and gains

The process of Accounts Payable involves receiving, verifying, and processing invoices for payment.

• Receiving invoices from vendors

• Verifying the accuracy of invoices against purchase orders and receipts

• Obtaining approval for payment

• Processing payments through the company's accounting system

• Reconciling accounts payable sub-ledger with general ledger

Accounts payable is the amount of money a company owes to its suppliers or vendors for goods or services purchased on credit.

• Accounts payable is a liability on the company's balance sheet

• It represents the amount owed by the company to its creditors

• Accounts payable is typically settled within a certain period, often 30, 60, or 90 days

• Examples of accounts payable include invoices from suppliers, utility bills, and rent payments

GRN or Goods Receipt Note is a document that records the receipt of goods from a supplier.

• GRN is a document that verifies the receipt of goods from a supplier.

• It contains details such as the quantity and quality of goods received.

• It is used to match the goods received with the purchase order and invoice.

• GRN is an important document for accounts payable as it helps in verifying and processing supplier invoices.

• Example: A company receives a shipment of 100 units of a product fr...read more

Trial balance is a list of all the general ledger accounts and their balances at a specific point in time.

• Prepared at the end of an accounting period

• Used to ensure that debits and credits are equal

• Helps in identifying errors and omissions in the accounting records

• If the debits and credits do not match, it indicates an error in the accounting records

• Example: If the total debit balance is $50,000, the total credit balance should also be $50,000

The purchase entry for TDS includes debiting the expense account and crediting the TDS payable account.

• Debit the expense account for the amount of the purchase

• Credit the TDS payable account for the TDS amount deducted

• Example: Debit Purchases account for Rs. 10,000 and Credit TDS Payable account for Rs. 1,000

Reconciling the vendor department involves verifying and matching vendor invoices with purchase orders and payment records.

• Invoice Verification: Ensure that the vendor invoice matches the purchase order in terms of quantity, price, and terms.

• Payment Matching: Cross-check payments made against the invoices to confirm that all amounts are accurately recorded.

• Discrepancy Resolution: Identify and resolve any discrepancies between vendor invoices and internal records, such as inco...read more

In my previous role, I managed vendor relationships, processed invoices, and ensured timely payments to maintain financial accuracy.

• Managed vendor relationships by negotiating payment terms and resolving discrepancies.

• Processed invoices accurately and efficiently, ensuring compliance with company policies.

• Conducted regular audits of accounts payable to identify and rectify errors.

• Collaborated with the finance team to prepare monthly reports on outstanding payables.

• Implemented...read more

Yes, I am comfortable working the night shift and can adapt my schedule to meet the needs of the team.

• I have previously worked night shifts in my last role, which helped me develop strong time management skills.

• I understand that working nights can sometimes lead to challenges, but I am committed to maintaining productivity.

• I have strategies in place to ensure I stay alert and focused during night hours, such as regular breaks and healthy snacks.

The objective of vendor invoicing is to accurately record and track the goods or services purchased from a vendor and facilitate timely payment.

• Vendor invoicing helps in maintaining accurate records of purchases and expenses.

• It ensures that the company is billed correctly for the goods or services received.

• Vendor invoicing helps in tracking payments and managing cash flow effectively.

• It also helps in building and maintaining good relationships with vendors.

• Examples: Receiving...read more

3 way matching rule is a process in accounts payable where the purchase order, receiving report, and vendor invoice are compared to ensure accuracy.

• Involves matching the purchase order with the receiving report and vendor invoice

• Ensures that the quantities, prices, and terms on all three documents match

• Helps prevent errors, fraud, and discrepancies in payments

• Example: If a company orders 100 units of a product, receives 90 units, and is invoiced for 100 units, the 3 way match...read more

3 way matching is a process in accounts payable that involves comparing three documents - purchase order, receiving report, and invoice - to ensure accuracy and prevent fraud.

• 3 way matching involves comparing the purchase order, receiving report, and invoice.

• The purpose of 3 way matching is to ensure accuracy and prevent fraud in accounts payable.

• The purchase order specifies the items ordered and their quantities.

• The receiving report confirms the receipt of the items and thei...read more

TDS and GST have different due dates depending on the type of taxpayer and the frequency of filing.

• TDS due dates vary based on the type of payment and the category of taxpayer.

• For example, TDS on salary payments is due on the 7th of the following month, while TDS on rent payments is due on the 30th of the following month.

• GST due dates depend on the turnover of the taxpayer and the frequency of filing.

• For example, taxpayers with a turnover of less than 1.5 crores can file GST ...read more