Livpure Accounts Payable Executive Interview Questions, Process, and Tips

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

• Includes steps such as requisitioning, purchasing, receiving, invoicing, and payment

• Involves creating purchase orders, receiving goods, matching invoices to purchase orders, and processing payments

• Ensures that goods and services are obtained at the best possible price and paid for in a timely manner

2Way, 3Way, and 4Way match are methods used in accounts payable to ensure accuracy in matching invoices, purchase orders, and receiving documents.

• 2Way match involves matching the invoice with the purchase order to ensure the prices and quantities match.

• 3Way match involves matching the invoice with the purchase order and the receiving documents to ensure all three documents align.

• 4Way match involves matching the invoice...read more

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 of money the company owes for goods or services received but not yet paid for.

• Accounts payable is typically recorded when an invoice is received from a supplier.

• It is an important part of the company's working...read more

Vendor reconciliation is the process of comparing the vendor's records with the company's records to ensure accuracy and resolve any discrepancies.

• Vendor reconciliation involves matching invoices, payments, and statements from the vendor with the company's records.

• It helps in identifying any discrepancies such as missing invoices, overpayments, or underpayments.

• The process ensures that the company is paying the correct...read more

The P2P cycle refers to the process of procuring goods or services from a vendor, receiving and approving the invoice, and making payment.

• The cycle starts with the procurement of goods or services from a vendor.

• Once the goods or services are received, the invoice is generated and sent to the accounts payable department for approval.

• After the invoice is approved, payment is made to the vendor.

• The cycle ends with reconci...read more

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

GST and TDS compliance are essential in an AP position to ensure accurate tax reporting and adherence to government regulations.

• Ensuring accurate calculation and timely payment of GST on vendor invoices

• Deducting TDS as per government regulations on payments made to vendors

• Maintaining proper documentation and records for GST and TDS compliance audits

• Reconciling GST and TDS amounts with financial statements for reporting

The golden rule of accounting states that debit what comes in and credit what goes out.

• Debit what comes in and credit what goes out

• Assets = Liabilities + Equity

• Revenue = Expenses + Net Income

Provisions are made to account for potential future expenses or losses that are uncertain but probable.

• To account for potential future expenses or losses that are uncertain but probable

• To ensure accurate financial reporting

• To comply with accounting standards and regulations

• To prevent understating liabilities or overestimating profits

• To reflect a true and fair view of the company's financial position

• Examples: Provision