100+ Accounts Payable Executive Interview Questions and Answers

3 way matching is a process of matching purchase orders, receipts, and invoices to ensure accuracy and prevent fraud.

• It involves comparing the purchase order to the goods receipt to the invoice

• All three documents must match in terms of quantity, price, and product description

• It helps to prevent overpayment, underpayment, and duplicate payments

• For example, if a company orders 100 units of a product, receives 90 units, and is invoiced for 100 units, the discrepancy will be caug...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

Validating and verifying invoices by explaining all transaction codes step by step.

• First, review the invoice for accuracy and completeness.

• Next, match the invoice to the purchase order and receiving report.

• Then, enter the invoice details into the accounting system using the appropriate transaction code.

• Finally, reconcile the invoice with the vendor statement to ensure all payments are accounted for.

• Example: Transaction code 101 may represent a standard invoice entry, while co...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

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

P2P stands for Procure-to-Pay, which is the process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services.

• P2P involves the entire procurement process from start to finish.

• It starts with a requisition for goods or services, followed by the purchase order, receipt of goods or services, invoice processing, and payment.

• The final step is accounting for the transaction in the company's financial records.

• P2P helps streamline the purchasing proce...read more

O2C stands for Order to Cash, which is the process of receiving and fulfilling customer orders.

• O2C involves receiving customer orders, processing them, fulfilling the orders, and receiving payment.

• It includes steps such as order entry, order fulfillment, invoicing, and payment collection.

• Efficient O2C processes help improve cash flow and customer satisfaction.

• Example: A customer places an order online, the order is processed, the product is shipped, and the customer pays for ...read more

Back reconciliation refers to the process of verifying and correcting discrepancies in financial records to ensure accuracy.

• Back reconciliation involves comparing financial records with bank statements to identify any discrepancies.

• It is important to investigate and resolve any differences found during the reconciliation process.

• Back reconciliation helps ensure that all transactions are accurately recorded and accounted for.

• Examples of back reconciliation tasks include matchi...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 reconciliation of the payment with the invoice and recording the ...read more

The PTP cycle refers to the process of procuring goods or services, receiving them, and paying for them.

• The cycle starts with the need for goods or services, followed by the creation of a purchase order.

• Once the goods or services are received, an invoice is generated and matched with the purchase order.

• The invoice is then approved for payment and processed for payment.

• Finally, the payment is made to the vendor or supplier.

• The PTP cycle helps ensure that goods or services are ...read more

Deferred revenue expense is when a company receives payment for goods or services that will be delivered in the future.

• Deferred revenue is a liability on the balance sheet

• The revenue is recognized as earned when the goods or services are delivered

• Examples include magazine subscriptions, software licenses, and prepaid rent

• Deferred revenue expense is the cost associated with delivering the goods or services

• It is recognized as an expense when the revenue is recognized as earned

TDS is deducted when certain payments are made, such as salary, rent, professional fees, etc.

• TDS (Tax Deducted at Source) is deducted by the payer at the time of making certain payments.

• It is deducted to ensure that the government receives tax revenue in advance.

• TDS is applicable on various payments like salary, rent, professional fees, commission, interest, etc.

• The deducted TDS amount is then deposited with the government by the payer.

• The recipient of the payment can claim t...read more

3 way process is a method of matching purchase orders, receiving reports, and vendor invoices.

• It ensures that the goods or services ordered were received and the invoice matches the purchase order and receiving report.

• If all three documents match, the invoice is approved for payment.

• If there are discrepancies, the invoice is sent back to the vendor for correction.

• This process helps prevent overpayment and ensures accurate financial records.

• For example, if a company orders 100...read more

Freight charges entry involves adjusting debit and credit notes for accurate accounting.

• Freight charges are typically recorded as an expense in the accounts payable ledger.

• Debit notes are used to increase the amount owed to a vendor for additional charges, while credit notes decrease the amount owed.

• Adjustments for freight charges may involve correcting errors in the original entry or accounting for discounts or refunds.

• Proper documentation and communication with vendors are ...read more

Accounts Payable Executive would see queries related to invoices, payments, vendor accounts, and discrepancies.

• Queries related to invoice processing and approvals

• Payment status inquiries from vendors

• Vendor account reconciliation questions

• Discrepancies in invoice amounts or terms

• Requests for duplicate invoices or payment proofs

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 for bad debts, provision for warranty expenses

PO is a purchase order issued by the buyer to the seller, while an invoice is a bill issued by the seller to the buyer for goods or services provided.

• PO is issued before the goods or services are received, while an invoice is issued after the goods or services are provided.

• PO specifies the details of the goods or services to be purchased, while an invoice specifies the amount to be paid for the goods or services provided.

• PO is used to track the delivery of goods or services, ...read more

Bad debt refers to money owed by a debtor that is unlikely to be paid back, resulting in a loss for the creditor.

• Bad debt is typically the result of customers defaulting on their payments.

• It is recorded as an expense on the creditor's financial statements.

• Companies may write off bad debts to remove them from accounts receivable.

• Examples include unpaid invoices, loans that are not repaid, and credit card debt that goes into default.

A PO based invoice is an invoice that is generated based on a purchase order issued by a buyer to a supplier.

• A PO based invoice is created when a buyer places an order with a supplier and a purchase order is issued.

• The invoice is generated based on the details mentioned in the purchase order.

• It helps in ensuring that the goods or services received match the order placed.

• PO based invoices are commonly used in business transactions to maintain proper documentation and control o...read more

Reconciliation is the process of comparing two sets of records to ensure they are in agreement.

• It involves identifying and resolving discrepancies between the two sets of records.

• Examples include bank statement reconciliation, accounts receivable reconciliation, and inventory reconciliation.

• Reconciliation helps ensure accuracy and completeness of financial records.

• It is an important internal control measure to prevent fraud and errors.

• Reconciliation should be performed regula...read more

Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit expenses and losses, Credit income and gains.

• Double-entry accounting system is based on these rules to ensure accuracy and balance in financial records.

• For example, when a company receives cash from a customer, the cash account is debited (incr...read more

Main aspects of an invoice include vendor information, invoice number, date, amount, and payment terms.

• Vendor information: Name, address, contact details

• Invoice number: Unique identifier for tracking and reference

• Date: Date of issuance or submission

• Amount: Total amount due for payment

• Payment terms: Terms and conditions for payment

2&3 way matching is a process used in accounts payable to ensure that the purchase order, invoice, and receiving report all match.

• 2 way matching involves comparing the purchase order to the invoice to ensure they match in terms of quantity, price, and terms.

• 3 way matching adds the receiving report to the process, ensuring that the goods or services were received as specified in the purchase order before payment is made.

• The goal of 2&3 way matching is to prevent errors, fraud,...read more

Procure to pay is the process of obtaining goods or services from a vendor, including requisition, purchase order, receipt, invoice, and payment.

• Procure to pay involves the entire process of purchasing goods or services from a vendor.

• It typically includes steps such as requisitioning, creating a purchase order, receiving the goods or services, processing the vendor's invoice, and making payment.

• The process ensures that goods or services are obtained at the right time, in the ...read more

GRIR open items refer to Goods Receipt Invoice Receipt open items in accounts payable.

• GRIR open items are created when there is a discrepancy between the goods receipt and the invoice receipt.

• These open items are usually resolved by matching the goods receipt and invoice receipt and making necessary adjustments.

• If the open items are not resolved in a timely manner, it can lead to inaccurate financial reporting.

• Examples of GRIR open items include overpayments, underpayments, a...read more

Vendor management is the process of overseeing relationships with suppliers and ensuring they meet business needs.

• It involves selecting and evaluating vendors

• Negotiating contracts and pricing

• Monitoring vendor performance

• Managing vendor risk

• Maintaining communication with vendors

• Examples include managing IT service providers, office supply vendors, and construction contractors

We are highly proficient in accounts with a strong track record of accuracy and efficiency.

• Our team consistently meets deadlines for processing invoices and payments.

• We have implemented automated systems to streamline the accounts payable process.

• Our financial reports are detailed and accurate, providing valuable insights for decision-making.

• We have a low error rate in accounts payable transactions, ensuring financial integrity.

• We regularly conduct audits to ensure compliance...read more

Accounts Payable is the amount owed by a company to its vendors/suppliers for goods or services received.

• Accounts Payable is a liability account that tracks the money a company owes to its vendors/suppliers.

• It includes all the outstanding bills and invoices that are yet to be paid.

• 2way matching is a process of comparing the purchase order with the invoice to ensure that the goods or services received match the ones ordered.

• It helps in identifying any discrepancies or errors i...read more

GSTR-3B is a monthly self-declaration that summarizes all the GST liabilities of a taxpayer.

• GSTR-3B is a summary of all the GST liabilities of a taxpayer for a particular month.

• It includes details of both inward and outward supplies, input tax credit, and tax payable.

• It must be filed by the 20th of the following month.

• TDS stands for Tax Deducted at Source.

• It is a mechanism for collecting tax at the source of income.

• It is applicable to various types of payments such as salary,...read more

The accounts payable cycle is the process of receiving, verifying, and paying invoices from vendors.

• Invoices are received from vendors for goods or services provided

• Invoices are verified for accuracy and approved for payment

• Payments are made to vendors within the agreed upon terms

• The cycle repeats for each invoice received

TDS rates vary based on different services provided.

• TDS rates are determined by the Income Tax Act, 1961.

• Rates can differ based on the nature of services, such as professional fees, rent, commission, etc.

• For example, the TDS rate on professional fees is generally 10%, while on rent it can be 10% or 2% depending on the situation.

• TDS rates can also vary based on the recipient of the payment, such as resident or non-resident.

• It is important to refer to the latest TDS rates and c...read more

PO stands for Purchase Order.

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

• It serves as a contract between the buyer and seller, outlining the terms of the transaction.

• POs are used in business to streamline the purchasing process and ensure accurate record-keeping.

• Example: A company issues a PO to a supplier for 100 units of a specific product at a set price.

• Example: Th...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• There are three types of depreciation: straight-line, accelerated, and units of production.

• Straight-line depreciation is the simplest method, where the asset is depreciated by an equal amount each year.

• Accelerated depreciation methods allow for a larger deduction in the early...read more

The golden rules of accounting are fundamental principles that guide the recording of financial transactions.

• The first golden rule is the Debit the Receiver, Credit the Giver rule. This means that when an asset is received, it is debited, and when an asset is given, it is credited.

• The second golden rule is the Debit what comes in, Credit what goes out rule. This means that when there is an increase in assets, it is debited, and when there is a decrease in assets, it is credit...read more

Closing pressure handling involves staying calm, prioritizing tasks, and effectively communicating with stakeholders.

• Stay calm under pressure to make rational decisions

• Prioritize tasks based on urgency and importance

• Communicate effectively with vendors, team members, and management to address issues and find solutions

• Delegate tasks when necessary to ensure timely completion

• Utilize technology and automation to streamline processes and reduce errors

SAP is a software system used for managing business operations and customer relations.

• SAP stands for Systems, Applications, and Products in Data Processing.

• It is used by businesses to manage various operations such as finance, sales, procurement, and production.

• SAP software helps in streamlining business processes and improving efficiency.

• It offers various modules such as SAP FI (Financial Accounting), SAP CO (Controlling), SAP MM (Materials Management), and SAP SD (Sales and...read more

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business.

• Involves recording financial transactions

• Summarizing financial data into financial statements

• Analyzing financial information to make business decisions

• Reporting financial results to stakeholders

• Ensures compliance with financial regulations and standards

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 issued when goods are returned by the buyer or when there is an overpayment by the buyer

• It serves as a proof of the reduction in the amount payable by the buyer

• It is also known as a credit memo or credit memorandum

• It includes details such as the date, buyer and seller information, reason for issuing the credit note, and the amount credited...read more

P2P Cycle Accrual is a process of recording expenses in the financial statements before they are paid.

• P2P stands for Procure-to-Pay

• Accruals are recorded to match expenses with the period they were incurred

• This concept helps in accurate financial reporting

• Example: Recording an expense for goods received but not yet invoiced

• Example: Recording an expense for services received but not yet paid

TDS entry can be passed by ensuring correct calculation of TDS, proper documentation, and timely submission.

• Ensure correct calculation of TDS based on applicable rates and thresholds

• Maintain proper documentation of TDS deducted and paid

• Submit TDS returns and challans within due dates

• Verify TDS credit in Form 26AS

• Rectify any errors or discrepancies in TDS entry

• Stay updated with changes in TDS rules and regulations

Vlookup, Hlookup, and If are functions used in Excel for searching and retrieving data.

• Vlookup is used to search for a value in the first column of a table and return a value in the same row from a specified column.

• Hlookup is similar to Vlookup but searches for a value in the first row of a table and returns a value in the same column from a specified row.

• If function is used to perform logical tests and return a value based on the result of the test.

• Example: =VLOOKUP(A2, B2:D...read more

Different items have different GST rates depending on their category.

• GST rates vary based on the category of the item

• Some common GST rates include 5%, 12%, 18%, and 28%

• For example, essential items like food grains have a lower GST rate of 5%, while luxury items may have a higher rate of 28%

• GST rates are determined by the government and can change over time

There are several types of payment methods including cash, checks, credit/debit cards, electronic transfers, and mobile payments.

• Cash

• Checks

• Credit/debit cards

• Electronic transfers

• Mobile payments

I have 8 years of experience in accounts payable roles.

• I have worked in accounts payable for 8 years

• Managed vendor relationships and processed invoices

• Implemented process improvements to increase efficiency

• Led a team of AP specialists to ensure timely payments

Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It reflects the wear and tear, obsolescence, or decrease in value of the asset.

• Common methods of calculating depreciation include straight-line, double-declining balance, and units of production.

• Example: A company purchases a delivery truck for $50,000 with a useful life of 5 years. Using straight-line depreciation...read more

Miscellaneous account is a general ledger account used to record transactions that do not fit into any other specific category.

• Miscellaneous account is often used for one-time or infrequent transactions that do not have a designated account.

• It helps in keeping the main accounts organized by preventing clutter with unique transactions.

• Examples of transactions that may be recorded in a miscellaneous account include bank fees, donations, or unusual expenses.

PO is a purchase order issued by a buyer to a seller, specifying the products or services to be purchased. Non-PO is an invoice without a purchase order.

• PO is a formal document that authorizes a purchase transaction, while Non-PO is an invoice submitted by a vendor for payment without a purchase order.

• POs are typically used for larger purchases or ongoing agreements, while Non-PO invoices are used for one-time purchases or services.

• POs help track and control spending, while N...read more