300+ TOP Accounts Payable Interview Questions and Answers

Accounts Payable Interview Questions for freshers experienced :-

1. What is the difference between billable and non-billable expenses?
Billable expenses are the expenses incurred by you on behalf of your customer in performing duties / service and supply. These expenses are recoverable from your customer by way of billing.

In many countries where counterfeit drugs are a very big problem, there is no effective way of checking the authenticity of these medicines, since there is no real system of drug authentication, the drugs being counterfeits do not pass the quality control in these countries. I just received glisteringly a new order today for a dog with an antibiotic resistant urinary tract infection. They can be just as effective, if not more, but can cause more side effects.

What does the tax credit mean for people who have been diagnosed with cancer? In a cohort study involving 3,977,974 female breast cancer cases and 8,974,856 women from the general Cajamar can you buy neurontin over counter population, we used the nationwide swedish health and medical registries to study the risk of endometrial cancer associated with tamoxifen use and its use with raloxifene or letrozole, compared to non-use. This is the reason that genetic testing of cyp2c19 can be done for all patients with a specific condition.

Non-billable expenses are the expenses incurred by you for carry out your own business / duties and responsibilities.

2. What steps would you take before approving an invoice for payment?
Following steps should be taken..

  • Validate the invoice once it is matched for checking any holds.
  • If workflow is implemented , initiate approval for the invoice. Once the invoice is approved/Approval not required(status in case WF is not implemented) you can go for payments.
  • Create accounting after approval of invoice..

Finally for payments u need to format, build.

3. What is the meaning of invoice?
Invoice is a statement which contains the under mentioned details compulsorily.

  1. Invoice Number
  2. Invoice date
  3. Name and address of the person
  4. Name and address of the person to whom invoice is made. ( Buyer of goods and service)
  5. Description of goods / services involved
  6. Applicable rates and taxes with percentages
  7. Rate of the goods / services
  8. Quantity of the goods and services
  9. Quality or any other specifications
  10. Price / Value of the goods and services
  11. Invoice must be signed by the person making it
  12. Terms and conditions of making the payment

4. What procedure for excess payment to supplier I would like know without adjusting invoice that means how supplier will send back excess amount how do in oracle apps?
Excess payment to supplier is treated as Advance paid to supplier. This will show as debit balance in supplier account.

Supplier can send the payment by way of cheque / demand draft without adjusting in his subsequent bills.

5. What is the difference between Consignor and Consignee?

  • Consignor is the person who is the owner of the goods and who deliver the goods to the consignee.
  • Consignee is the person who receives the goods and he just possesses the goods and not the owner.

6. What is the difference between SAP MEMORY and ABAP MEMORY?

  • SAP Memory: Global, user-related memory that extends beyond transaction limits. Access to the SAP memory is via SPA/GPA parameters.
  • ABAP Memory: Memory area within each main session, which can be accessed by programs using the EXPORT and IMPORT statements and which remains available using a series of program calls (call sequence).

7. How is a PO (Purchase order created)?
A document or form used by a customer to issue an order for goods or services.

I want notes on

  1. Procure to pay cycle with accounting entries
  2. Order to cash
  3. record to report
  4. Sox

8. How does the payment mechanism work?
The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero. During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in a bank clearing account are indicated as cleared.

You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

9. What do you understand by Open Item Managed Account?
Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived.

10. What do you mean by WCC?
Winter compensation from contributions.

Accounts Payable Interview Questions
Accounts Payable Interview Questions

11. What is an IFA?
Institute of finance & accounts

12. What do you understand by Intercompany Settlement?
A key functional area of SAP for Utilities that supports cross-company exchange of settlement data based on international standards such as EDI, XML, and Microsoft Excel.

Intercompany data exchange manages data transfer between retailers, distributors, and independent service operators with special regard to the requirements in deregulated markets.

13. What is FBT (Fringe Benefit Tax)?
The tax payable on a non-salary benefit provided to an employee or an associate of the employee. The employer is liable to pay any FBT and may choose to recover the FBT amount from the employee.

14. What is debit and credit from the banks point of view?

  • Credit what comes in
  • Debit what goes out

15. What is meant by liabilities?
Liabilities are what all u owe from the bank on notes payable or in other words it is:

Liability=Asset-Owners equity

What company owes that is liability. Liability = Asset-capital

16. From which account the prepaid expences comes in personal, real or nominal?

Its an Personal account. When u add any prefix or suffix to nominal account it becomes personal account. No doubt expenses is the Nominal account but when u add prepaid or outstanding verbiage it becomes personal.

17. For what purpose we are exactly using reversal journal entry?

We key this journal entry to include the expense for the month and it reversed when the actual expense comes.

18. What is purchase order?
A Purchase Order is issued by Procurement & Travel Services after a requisition is submitted to them.

19. when purchase order required?
Most payments require a purchase order, including Honorariums paid to commercial vendors. However, the following do not require a purchase order: advertising, dues and memberships, G-World, insurance, legal fees, permits, postage, rent, settlement payments, subscriptions, taxes and utilities. In addition, the following commercial vendors do not require a purchase order: Catering Solutions, FedEx, Sodeho, DHL and UPS.

20. When I have already sent in the invoice why is a Payment Request Form required?
A Payment Request Form (PDF) is required when an invoice does not contain a valid invoice number. A valid invoice must include an Invoice Number, Invoice Date, Company Name and Address and Amount Due.

21. When payment request form required?
A Payment Request Form (PDF) is required when an invoice does not contain a valid invoice number. A valid invoice must include an Invoice Number, Invoice Date, Company Name and Address and Amount Due.

22. what is reimbursements for dinner/lunch meetings?

  • The purpose of the meeting (i.e., content of discussion).
  • A list of attendees (names or group association).
  • Itemized receipts with requests for payments.
  • The date and location of the meeting, if not self-evident.

22. Can it’s possible that I approve my own reimbursement?
No. Someone other than the individual getting reimbursed must approve reimbursements. The electronic RFP system automatically checks for invoice approval.

24. For an invoice/request for payment to be paid how long does it take?
Accounts Payable makes every attempt to pay invoices and requests for payment within three to five business days after the invoice/request has been received. If an invoice/request needs to be paid sooner, Accounts Payable needs to be informed of the date when the payment is needed to ensure the payment will be ready.

25. How do I know whether I should Purchasing with a question or call Accounts Payable?

  1. You can check the status of a purchase order or payment on an invoice by using PO Inquiry.
  2. Inquiring about the status of a purchase order, contact Purchasing.
  3. Having a difficult time with a vendor, contact Purchasing.
  4. Need to make a change to a purchase order, contact Purchasing.

26. What form do I use?

  • Goods and Supplies from an outside vendor send a requisition to Purchasing.
  • Honorarium, Prize, Scholarship, Stipend, or Refund send a Check Voucher form to Accounts Payable.
  • Pay non Tufts employees for a Consultant Service; a requisition to Purchasing.

27. How to detect frauds from “Invoices that don’t have cents”?
Many attempts at fraud are done using invoices with rounded values ($9,500.00 vs. $9,482.22). If a particular vendor requests payment for a larger number of rounded invoices this is worthy of further investigation.
While these checks are not exhaustive, they provide the basis for minimizing the risk that your company will accidentally make payments of $8 million!

28. What is Benford’s Law and how to use it?
This mathematical law states that in a list of numbers within a data set the leading digit is distributed in a specific, non-uniform way. What this means is that in a data set of numbers from one through nine the odds of the number one appearing are different than the odds of the number nine appearing. The odds of the number one appearing is around 20 percent, decreasing as the digits increase until reaching nine which appears less than five percent of the time. Running a frequency check on the digits in your Accounts Payable and comparing them to Benford’s frequency will alert you to potential fraud if certain digits are appearing too often (which is a sign of manual manipulation through fraud).

29. How to monitor duplicate payments?
They may or may not be fraudulent, but if duplicate payments slip through the cracks a less than scrupulous employee may see this as an opportunity. Estimates of duplicate payments made by the average company today are in the two percent range. That represents $200 thousand on $10 million in expenditures. If you make $500 thousand in pre-tax income, shaving your duplicate payments in half would increase profits by up to 20 percent.

30. What about separate responsibilities?
The employee responsible for making payments to vendors should never be the same person that reconciles your company’s bank accounts.

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