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HR INTERVIEW Q/A

1. Introduction and Background for P2P (Accounts Payable)

1. Name: HI, I am Rahul

2. Location: I am from Uttarakhand and Currently reside in Delhi.

3. Qualification: I did my graduation in Commerce from Delhi University

4. Experience: I have a total experience of 2 years

5. Organization: Currently I’m working with Fork Strong Pvt. Ltd as accounts executive in the accounts payable department &

6. My Job Responsibilities are:

7. Verification of Invoice

8. 2 Way & 3 Way match of Invoice

9. Processing of Vendor in SAP

10. Check the PO & service agreement before processing the Invoice

11. Ensure all entries are recorded in the correct Ledger & Cost Center

12. Process both PO & Non-PO based Invoice

13. I Ensure all entries recorded as per GST

14. A Part from this I prepare vendor statements & reconciliations as well. & resolve vendor quires

IT Skills: - I am working on SAP & have a working knowledge of Excel

I have good verbal and written communication skills along with typing speeds of 40 words per minute

Family Background: - In my family, there are 4 members including me. my father, my mother my elder brother

Strength: Adaptability accuracy in serval environments and Working hard are my core strength. This is all about me Thanks

- Q: Why are you looking for a Job Change? (For Experienced)

ANS: For the sake of better opportunities and enhancing my area of domain (profile), I am looking for a job change. For personal and professional development, I am looking for a job change.

- Q: Why are you looking for a Job?

ANS: I have the skills to contribute to the growth of the organization. I feel that my skills are best suited for this position.

- Q: Where do you see yourself after 5 Years?

ANS: After 5 years, I will see myself as an AM or TL in this organization. After 5 years, I will see myself as TL with an important profile.

- Q: What is your short-term goal?

ANS: My short-term goal is to get this job and to accommodate myself in the new environment.

- Q: What is your long-term goal?

ANS: My long-term goal is to prove myself as an asset of the company by implementing the things that I learned from my previous experiences.

- Q: What skills will reach you to be a manager?

ANS: My decision-making ability, positive attitude, and learning attitude will reach me there.

- Q: What is your weakness?

ANS: I can't say NO to anybody/any work, but at the same time, it hampers my work as well. I can do 2 works simultaneously, but sometimes it affects my accuracy.

- Q: What is your current CTC (Cost to Company)/Salary?

ANS: 2.8 lakh per annum (22,500 per month).

- Q: Is this a fixed salary or is there any variable part involved in it?

ANS: It's all fixed.

- Q: Do you get your salary in the Bank or In-Hand?

ANS: In Bank.

- Q: Do you have the pay slips & appointment Letter with you?

ANS: Yes, I have 3 monthly salary slips, an appointment letter, and an experience letter.

- Q: What is your expectation?

ANS: 3.6 to 3.9 lakh per annum for experience. For fresher: 2.4 to 2.8 lakh.

- Q: Is it negotiable?

ANS: Yes, it is.

- Q: What is your notice Period?

ANS: It's 15 days.

- Q: Is it negotiable?

ANS: Yes, it is. Yes, I will try to join you soon.

- Q: Are you ready to work in the US Shift?

ANS: Yes, I am comfortable. Shift: UK: 12 PM to 9 PM, US: 5:30 AM to 2:30 AM,

AUS: 4 AM to 1 PM.

- Q: How will you commute to the office?

ANS: I have my own vehicle, and there is a shuttle service from my place to the office area, so that is not a problem at all.

- Q: Why should I hire you?

ANS: With reference to my job profile, I satisfy all the requirements for this job. I have 2 years of experience in AR, which is the key requirement for this job. My Excel expertise makes me different from others, and being young, I can accommodate any shift and stretch as per the process requirement.

- Q: Why do you want to Join Accenture/Genpact?

ANS: It's a well-known brand and provides great amenities and environment to its employees. It will be a privilege for me to work with such a brand as everyone wants to be a part of it.

- Q: Did you ever try in Genpact before?

ANS: No.

Feedback

- Q: If I came to your office & give your feedback from your manager, what would he say?

ANS: He would say, Rahul is very positive, not only towards his work but also caring with a positive attitude. Whatever work is assigned to him, he does it with full dedication.

- Q: If your manager shouts at you, will you report to HR?

ANS: No, being a part of the team, we have to work together, so there is no need to highlight it to HR.

- Q: What is your achievement?

ANS: I was awarded the Star of the Month in Feb 2022 for clearing the backlog of invoices when a colleague left the organization.

AP/P2P Related – Q/A

1. Basic Concepts

- Q: What is Accounting?

ANS: Accounting is the process of recording, classifying, summarizing, and analyzing financial transactions in a useful way.

- Q: What is Accounts Payable?

ANS: Accounts Payable is the money that a company owes to its Creditors because the company has purchased goods or services from its vendors but not yet paid. This is a short term debt | Trade Payables, P2P, Creditors, Suppliers

- Q: What is P2P?

ANS: P2P means Procure (Purchase) to Pay.

- Q: Is there any difference between P2P & AP?

ANS: P2P is a cycle, and AP is a part of it.

2. P2P Cycle

- Q: What is P2P Cycle?

ANS: It means Procure to Pay Cycle. In P2P there are multiple departments involved & participating in procuring goods to realize payment to the vendor

The P2P Cycle Starts with creating the Purchase requisition then we have to explore the vendor & get quotations from the vendor, on the basis of the quotation received we finalize the vendor & create the purchase order, then vendor delivers the material & the storekeeper receives it & Pass the accounting entry by MIGO Movement In Goes Out

Inventory Account Dr

To GRN/GR/IR Account (Goods Receipt Note) Goods/Invoice Received

Then we receive the soft copy of the invoice & before processing it, we have to verify the invoice in terms of 2 Way Match, 3 Way Match & all the commercial parameters & we process the invoice via T Code MIRO Movement In Received working & pass the accounting Entry

GRN/GR/IR Account Dr.

To Vendor Account

[ Here GR/IR is cleared & payable is created]

On the basis of the payable created in the system payment team releases the payment & passes the accounting entry

Vendor Account DR

To Bank Account

[Here we need to clear the Vendor]

& Finally, we have to reconcile the vendor account & report to the management.

PR	ME51N
PRQ –	ME41
Maintain Quotation	ME47
Price comparison	ME49
Purchase Order	ME21N
Display/History PO	ME23N
GRN –	MIGO
INVOICE –	MIRO
PAYMENT –	F110 Automatic payment \| F53 Manual Payment

- Q: From where does our work start in the P2P cycle?

ANS: Our work starts with invoice processing in the P2P cycle.

Purchase Requisition and Purchase Order

- Q: What is Purchase Requisition?

ANS: It is a document generated by the production/Concerned department and sent to the purchasing/procurement department regarding the quantity and disc. Of product within a time frame. For example, the company xyz is a trading business of apparel and requires 2000 men's T-shirts. The company receives three quotations from different vendors:

- Yango Group: 500 per T-shirt

- Kid Line: 600 per T-shirt

- NC Accessory: 550 per T-shirt

The procurement team finalized Yango and created a purchase order.

- Q: What is a Purchase Order?

ANS: A PO is an agreement between the buyer and seller and is generated by the buyer. It contains:

1.	Required Quantity
2.	Agreed Price
3.	Description of Goods
4.	Tax Rate
5.	Bank Details of Vendor
6.	Payment Terms
7.	Place of Delivery, etc.

- Q: What is the relevance/importance of PO?

ANS: Since it is an agreement between the buyer and seller, in case the buyer denies procuring the material, it acts as a legal agreement for further processing.

- Q: What are the types of PO?

ANS: There are four types of PO:

1. Standard PO 2. Contract PO 3. Planned PO 4. Blanket PO

It is mentioned in the invoice, normally on the top of the PO number.

Standard PO:	It is the most commonly used PO and contains all the information like price, quantity, description, payment terms, delivery date, bank details of the vendor, etc.	For example, 200 kg of material at 14/kg to be delivered tomorrow.
Contract PO:	A Contract PO contains vendor details, and payment terms, but the product or services to be purchased are not specified. It is an agreement b/w buyer & seller over a predefined material or service over a period of time.	For example, 2000 T-shirts have been delivered by Yango Group at the IBM plant. It will be counted and stored by the storekeeper.
Planned PO:	We know the price and quantity in this PO but don’t know the delivery date. We don’t immediate requirement for goods/services but in the future, we will need it	For example, we need 10 computers at 20,000 each but don’t know when we need it
Blanket PO:	This is normally used for long-term purchases Items are used for day-to-day usage or MRO Maintenance, Repair & operations.	For example, Rent, Maintenance, etc.

- Q: How to check the PO in SAP?

ANS: There is a T-code ME23N that is used to display the PO.

- Q: How & Why do we check the PO history in SAP?

ANS: There is a T-code ME23N that is used to check the PO and we can check the purchase history as well from the same T-code that determines how much the PO consumed and whether GR/IR is posted or not and the invoice has been booked or not.

Goods Receipt and Invoicing

- Q: What is GR/IR or MRN or GRN?

ANS: It is a written acknowledgment that confirms that goods or invoices have been received. – GR/IR means Good Receipt/ Invoice Receipt

- GRN means Goods Receipt Note

- MRN means Material Receipt Note

- Q: What is Invoice? What does an Invoice Contain?

ANS: An invoice is a non-negotiable commercial instrument issued by the seller to the buyer. It contains:

1.	Invoice No
2.	Invoice Date
3.	Name & Address of both parties
4.	GST No of both parties
5.	Description of Goods
6.	Price/Quantity/Rate
7.	Tax Rate
8.	Taxable Value
9.	Tax Amount
10.	Total Value
11.	Invoice should be signed by the authorized person.

- Q: What is Performa Invoice?

ANS: A Performa Invoice is like a quotation issued by the seller to the buyer before delivering goods or services. We can’t process the Performa invoice at any cost.

- Q: How do you differentiate the Invoice & the Performa Invoice?

ANS: It is mentioned over the invoice whether it is an invoice or a Performa Invoice.

- Q: Why do we not process Performa Invoice?

ANS: Because it is a quotation, but sometimes it is used for releasing the advance payment.

- Q: What are the types of Invoices?

ANS: There are two types of invoices:

1. PO Based Invoices (MM-FI) – MIRO/MIR7

2. Non-PO Based Invoices (FI) – FB60/FV60

- PO Based:

An invoice where material is involved and a PO is created before delivering goods or services.

For example, 100 kg of material, 500 T-shirts, etc.

- Non-PO Based:

An invoice where the buyer gets the services first and will pay for the bill that the seller sends.

For example, Rent, Freight, Maintenance, etc.

2-Way Match:

Where the price and quantity in the invoice should match with the PO.

- INVOICE = PO

Rent Agreement, 500 kg of material.

3- Way Match:

Where the price and quantity in the invoice should match with the PO and the GRIR report.

- INVOICE = PO = GRN

500 kg of material and 300 T-shirts, etc.

4-Way Match:

Where the price and quantity in the invoice should match with the PO along with the GR/IR report and the quality report.

INV. = PO = GRN = QUALITY REPORT

- Q: What is the tolerance limit?

ANS: It allows us to process any invoice in SAP. 30 Lakh.

2-Way Match is for services and materials

3-Way Match is for materials only.

- Q: You have a Material Invoice. Will you do a 2 Way or 3 Way Match or both?

ANS: We will do both 2 Way and 3 Way Match.

- Q: You have a Service Invoice of Rent Agreement. Will you do a 2 Way or 3 Way Match or both?

ANS: We will do only a 2 Way Match as it is a service.

- Q: How do you verify the Non-PO Based Invoice?

ANS: We can verify the Non-PO Based Invoice/Service Invoice from the Service Agreement.

- Q: What is the difference between MIGO & MIRO?

- MIGO is done by the storekeeper at the time of receiving material and services.

MIRO is done by the invoice processing team.

- In MIGO, the accounting entry would be:

- Inventory Account Dr

- To GR/IR Account

- In MIRO, the accounting entry would be:

- GR/IR Account Dr

- To Vendor Account

- Q: on which ERP are you working on? ERP full form?

Ans: I am working on SAP. ERP stands for Enterprise Resource Planning

- Q: Which version of SAP are you working on?

Ans: I am working on S4 Hana | Systems, Applications, and Products in Data Processing

- Q: On which module SAP are you working on?

Ans: I’m working on the SAP FI/CO (Financial Accounting and Controlling) Module in SAP

- Q: What is the very first accounting entry created in the P2P Cycle?

ANS: The very first accounting entry is created at the time of material receiving, and the entry would be:

- Inventory Account Dr

- To GR/IR Account

- Q: What is the journal entry created at the time of the creation of the Purchase Order?

ANS: No journal entry is created at the time of the creation of the PO.

- Q: Who creates the Purchase Order?

ANS: The buyer creates the PO by the T-code ME21N.

- Q: What is the difference between PO & SO?

ANS:

- PO is created by the buyer and it is created by ME21N in SAP

- SO is created by the sales order. while SO is created by VA01 in SAP.

- Q: What is the difference between FB60 & FV60?

ANS:

- FB60 is used to post the vendor invoice in SAP while FV60 is used to park the vendor invoice in SAP.

- In FB60, the impact/value goes to FBL1N & FBL3N while in FV60, the impact/value gets held until it is posted by the manager/TL.

- In FB60, there is no maker and checker concept while in FV60, there is a maker and checker concept.

- Q: what is the T Code to check the PO?

Ans: we can check the PO by ME23N or ME2L.

- Q: While Processing the Vendor invoice, you are getting an error of invoice value exceeding the PO so what you do in that case?

Ans: In that case, we need to approach the purchase team & ask them to update the PO

- Q: Do you process the PO Based Invoice or Non-PO Based Invoice?

ANS: I process both the invoices, PO and Non-PO Based Invoice.

- Q: What is the process to process the PO Based Invoice?

ANS: Before processing any invoice, we need to check the 2 Way Match, 3 Match, and all commercial parameters like invoice number, invoice date, PO number, name, and address, etc. Then we have to go to MIRO T-code, enter the required fields like

invoice number, invoice date, amount, narration, and in the footer part, we have to enter the PO number. A GR/IR line is populated, and we have to save the entry.

- Q: What are the reasons why an invoice is put on hold? What are the challenges while processing any invoice?

ANS:

1. 2-Way Mismatch: Sometimes there is a two-way mismatch, and we need to approach the vendor and ask them to share the correct invoice.

2. Image not cleared: In this case, we can’t process the invoice.

3. Sometimes are GST of the buyer is missing in so we need to approach the vendor & ask him to share the rectified invoice.

4. Sometimes we receive the Performa invoice rather than the invoice, which we cannot process.

5. Sometimes the approval of the concerned department is missing, and we need to approach the concerned department and ask them to approve the invoice.

- Q: Before processing any invoice, what parameters do you check?

ANS: Before processing any invoice, we need to check the tolerance limit, 2 Way Match, 3 Way Match, all commercial parameters, and the approval of the concerned department.

- Q: What is a debit & credit note?

ANS: A Debit note is issued where there is Purchased return of goods and it is issued by buyer. for Example, short fall of goods or defected goods by provide by seller.

Debit note also denotes that we are decreasing the Invoice value. Debit Note is created by FB65

Vendor A/c Dr.

To Purchase Return Cr.

Credit Note: Credit note is issued where there is sales Return of Goods and it’s issued by Seller. For Example, a Defect in goods or wrong delivery of goods.

Credit note also denotes that we are decreasing the sales value. -Credit Note is created by FB75.

Sales Return A/c Dr.

Customer A/c Cr.

Duplicate Invoices and T-Codes

- Q: How do you check the duplicate invoice?

ANS: There are certain methods to check the duplicate invoice:

1. As we maintain the Excel tracker for vendor invoices, when we enter the same invoice number of the particular vendor, the cell gets highlighted as we apply conditional formatting.

2. SAP doesn't accept the same invoice number as same the vendor, so it shows an error that the invoice has already been posted against the document number.

- Q: On Which T Codes you are Currently Working On?

ANS: I am working on FB60, MIRO, ME23N, FBL1N, FBL3N, FB02, and FB03.

Vendor Management

- Q: What is the T-code for creation vendor in sap

Answer: XK01. In XK01 Vendor is Created at 3 levels. General level, Company Code Level, and Purchase Organization level.

- Q: What is the T-Code for Processing Vendor Invoice in SAP?

ANS: For PO-based invoices (Material Invoice) we do it through MIRO &for NON-PO based invoice (Service Invoice) we do it through FB60.

- Q: You Park the Invoices or Post the Invoices?

ANS: Park the Invoices via FV60 and Post the invoices Via FB60.

- Q: What is Vendor Master data creation in SAP?

ANS: Vendor Master data creation means creating the vendor in SAP using XK01. In XK01, we have to fill in all the details of the vendor like Name, Address, Telephone No, PAN No, GST No, Bank Details, Payment terms, etc.

- Q: How do you edit the vendor in SAP?

ANS: XK02 is used to edit the vendor details.

- Q: What are Payment terms?

ANS: Payment terms are the terms between the buyer and seller for releasing the payment. It could be immediate, 30 days, or 60 days.

- Q: What is the Payment method?

ANS: Payment method is the way of releasing the payment. It could be direct transfer or issuing a cheque.

- Q: What is Base Line Date?

ANS: The base line date is the expected date of payment.

- Q: Do you have any experience releasing the vendor payment?

ANS: Yes, I have experience in releasing the vendor payment. F110 is the T-code for releasing the payment. For payment, there should be a payable entry in our system, and the payable should be due.

- Q: What is the process to release the vendor payment

1.	Parameter	First, we have to set the parameter. In the parameter, we have to mention the company code, vendor, payment method, etc., and save it.
2.	Proposal	Once the parameter is set, we have to run the proposal.
3.	Payment	After the proposal, we have to run the payment.

- Q: You have released the payment twice. What should you do in that case?

ANS:

1. You can adjust the payment with a future invoice.

2. Or we can refund the vendor.

- Q: When do you release the vendor payment in your current organization?

ANS: We have four payment cycles: 1 for urgent payments like rent, tax, and utility bills, and the rest on the 10th, 20th, and 30th of every month.

- Q: What is A Block & R Block in vendor payment?

ANS: In A Block, we have booked the invoice but later we check the material need to return as it was defected. In that case we need to block the vendor & this block is called A Block.

R Block, invoice yet to be verified.

- Q: what is the difference between a Parked invoice & Blocked invoice?

Ans: Parked invoice means when invoice is parked or hold for further checking & blocked invoice means invoice has been posted but blocked for payment.

- Q: What is Bill to Address, Ship to Address, Sold to Address & payee?

ANS:

- Bill to Party: Where invoices need to be sent.

- Ship to Party: Where the product needs to be delivered.

- Sold to Party: The customer who places the order.

- Payee: Who makes the payment.

Daily Routine and Additional Activities

- Q: What is your daily routine?

ANS:

1. I start my day at 10 AM.

2. Invoice processing (both PO & Non-PO).

3. Hold the invoice if needed.

4. Prepare the statement & reconciliation.

5. Resolve vendor queries.

- Q: Apart from invoice processing, what other activities do you cover in your current organization?

ANS: Apart from invoice processing, I also prepare the vendor statement and reconciliation and sometimes resolve vendor queries.

Golden Rules of Accounting

ANS: There are three Golden Rules of Accounting:

-Nominal Account:	- Personal Account:	- Real Account:
- Dr: all expenses and losses	- Dr: the receiver	- Dr: what comes in
- Cr: all income and gains	- Cr: the giver	- Cr: what goes out
Complete P&L comes under it.	Natural person, Artificial person	Complete B/S comes under it.
Example: Rent, Salary, Freight etc	Creditors and Debtors are included.	. Fixed Assets, Bank, Tax, etc.

Invoice Receipt

- Q: Did you receive the invoice by mail or hard copy?

ANS: I receive the soft copy of invoices on mail.

Invoice Processing Efficiency

- Q: How many invoices do you process in a single day?

ANS: 70 to 80 invoices per day.

- Q: How long will it take to process a single invoice?

ANS: 4 to 5 minutes, as we have to check the 2 Way Match and other parameters before processing the vendor invoice.

Error Handling

- Q: If the entry is posted incorrectly, then what would be the next step?

ANS: If I post the entry incorrectly in SAP, then in that case, I need to approach the manager to reverse the said entry, and he will confirm with me over mail regarding the status.

- Q: What is the T-code to reverse the wrong entry?

ANS: FB08 is used to reverse the entry in SAP.

Cost Center and GL

- Q: What is Cost Center?

ANS: Cost Center is used to allocate the cost of the company department-wise. Cost Center is always assigned to expenses. Examples:

Admin	1000
Operations	1000
Marketing	1000
Sales	500

- Q: What is the difference between Cost Center and GL?

Cost Center:	Used for internal reporting.
General Ledger:	Used for external reporting.

Vendor Statements and Reconciliations

Vendor Statement

- Q: What is a vendor statement?

ANS: A vendor statement is a statement that we need to provide to the vendor for a particular period so that the vendor matches his books with the statement provided.

- Q: What is the objective of preparing the vendor statement?

ANS: The objective is to match both the books of the seller and the buyer and avoid any discrepancies.

- Q: How do we prepare the vendor statement?

ANS: First, we go to FBL1N, enter the fields like vendor code, and company code, then go to all items, select the respective period, and execute it. We select the layout as per our requirement and export it (List -> Export -> Spreadsheet) and mail it to the customer.

- Q: When do you prepare the vendor statement?

ANS: We prepare the vendor statement on a monthly basis, but sometimes the vendor asks for the statement in between the months, so we have to provide it accordingly.

- Q: What is Layout & how do we make it?

ANS: Layout contains standard fields that we require while preparing the statement. If we need some extra fields, then we can click on the change layout button. A pop-up will come containing Line 1 and Hidden field options. We drag the field to Line 1 as per the requirement and copy it.

- Q: How do you get the vendor statement in SAP?

Ans: First we need to go to FBL1N, then search for the vendor code & Enter the company code then we have to select the respective period & execute it. We also need to select the layout if required.

- Q: What data do we need to provide to the customer?

ANS: We need to provide the data like invoice number, invoice date, amount, remarks to the vendor statement.

2. Vendor Reconciliation

- Q: What is vendor reconciliation?

ANS: Vendor reconciliation is the process of matching the closing balance of the vendor statement provided by the vendor with the closing balance of the SAP vendor ledger. If there is any mismatch, then we have to prepare the reconciliation statement. The vendor sends us the statement for a particular period that we need to match with the SAP ledger. I go to FBL1N, select the vendor code, company code, and select the respective period, and execute and export it. Now we have two reports: one is the vendor statement provided by the vendor, and another is the SAP vendor statement. We have to match it with the help of VLOOKUP and highlight the mismatch.

- Q: What are the reasons for preparing the vendor reconciliation?

ANS:

- Sometimes the purchase invoice and the sales invoices don’t match with the vendor statement.

- Sometimes the payment received and the payment released don’t match.

- Sometimes the debit and the credit note do not match.

- Q: How long will it take to prepare the vendor statement or reconciliation?

ANS: It depends on the number of line items. Normally, for a three-month statement or reconciliation, it takes around 1 hour to prepare the data.

- Q: What is the difference between vendor statement & vendor reconciliation?

ANS: We have to prepare the vendor statement and share it with the vendor for a particular period. In vendor reconciliation, we need to match the closing balance, and if there is any mismatch in the closing balance, then we need to reconcile the data and highlight the mismatch.

SAP T-Codes

- Q: What are the T Codes for Vendor & GL Balance?

ANS: For Vendor, it’s FBL1N, and for GL, it’s FBL3N.

Handling Vendor Queries

1. Query Volume and Types

- Q: How many queries do you receive from vendors?

ANS: Normally, we receive 12 to 15 queries from vendors daily.

- Q: What type of queries do you normally receive from vendors?

ANS: We receive queries pertaining to payment status, invoice status, and vendor statement.

2. Response Time and Escalation

- Q: What is the TAT or the SLA for resolving the queries?

ANS: The TAT (Turn Around Time) or the SLA (Service Level Agreement) to resolve the vendor query is 48 hours, but we have to respond to the mail or acknowledge the mail at the same time.

- Q: What if you fail to resolve it within the TAT?

ANS: Then it would be escalated to the team leader.

Process Improvement Suggestions

Suggestions for Management

- Q: Do you have any idea or suggestion that you have given to the management for streamlining the process?

ANS: Yes, we were receiving the hard copy of invoices earlier, so I asked my TL to get the invoices scanned so that it would be easier for us to attach them in SAP and it would be available for other employees and auditors to check the invoices as and when required.

Accounting Terms

1. Prepaid and Outstanding Expenses/Income

- Q: What is Prepaid Expense?

ANS: Prepaid Expense is the expense that is paid in advance. For example, Rent, Insurance, AMC (Annual Maintenance Cost).

- Prepaid Expense Account Dr (B/S Assets)

- To Bank Account

- Q: What is prepaid Income?

ANS: Prepaid Income is the income received in advance. For example, Rent, Insurance, etc.

- Bank Account Dr

- To Prepaid Income (B/S Liabilities)

- Q: What is outstanding Expense?

ANS: Outstanding Expense is the expense that has been booked but not yet paid.

- Expense Account Dr

- To Outstanding Expense Account (B/S Liabilities)

- Q: What is Outstanding Income?

ANS: Outstanding Income is the income that is earned but not yet received.

- Outstanding Income Account Dr (B/S Assets)

- To Income

2. Deferred Revenue Expenditure and Contingent Liability

- Q: What is Deferred Revenue Expenditure?

ANS: Deferred Revenue Expenditure is the expenditure incurred during an accounting period, but the benefit is to be derived over the period. For example, Advertisement in a metro.

- Q: What is Contingent Liability?

ANS: Contingent Liability is a liability or potential loss that may or may not occur depending on the outcome of an event, like a product warranty.

3. Accrued Expense

- Q: What is Accrued Expense?

ANS: Accrued Expense is the expense in which we have taken the service, but the bill against the said service has not been booked in our accounting system.

- Expense Account Dr

- To Accrued Expense Account (B/S Liabilities)

4. Fixed Assets and Depreciation

- Q: What is Fixed Assets?

ANS: Fixed Assets are assets used for a longer period and cannot be converted into cash easily or quickly.

- Fixed Assets Account DR

- To Vendor Account

- Q: What is Depreciation?

ANS: Depreciation is the reduction in the value of fixed assets due to wear and tear.

- Depreciation Account Dr

- To Accumulated Depreciation Credit

- Q: What is Accumulated Depreciation?

ANS: Accumulated Depreciation is the total amount of depreciation calculated during the financial year.

- Q: What are the methods of depreciation?

ANS: There are two types of depreciation:

1. Straight-line method

2. Written down value method

5. Bank Reconciliation

- Q: What is Bank Reconciliation?

ANS: Bank Reconciliation is the process of matching the closing balance of the bank statement with the closing balance of the bank ledger.

MS-Excel Related – Q/A

Excel Proficiency

- Q: How comfortable are you with Excel?

ANS: I am very comfortable with Excel. I perform basic to advanced operations including VLOOKUP, SUMIF, Pivot Table, etc.

- Q: How will you rate yourself out of 10 in Excel?

ANS: I will rate myself as 7.5 to 8 as Excel is very wide and it is difficult to cover the entire Excel.

Excel Functions

- Q: What is VLOOKUP?

ANS: VLOOKUP is used to retrieve data from a range of cells based on the column number. The formula is: =VLOOKUP(Lookup Value, Range, Column No, Exact Match)

- Q: What is the drawback of VLOOKUP?

ANS: If there are duplicate values in the data, VLOOKUP will pick the first one rather than the second one and give an incorrect result.

- Q: What is SUMIF?

ANS: SUMIF is used to add all the numbers in a range of cells based on criteria. The formula is:

=SUMIF(Range, Criteria, Sum Range)

- Q: What is Pivot Table?

ANS: Pivot Table is used to organize, sort, and make the data presentable.

The shortcut is Alt + N + V + T.

Billable and Non-Billable Expenses

1. Expense Types

- Q: What is billable & Non-Billable Expense?

ANS:

- Billable Invoice: The invoice that pertains to the work directly related to the client project and can be reimbursed by the client.

- Non-Billable Invoice: The invoice that cannot be directly billed to clients.

T&E in Accounts Payable

1. Travel and Employee Reimbursement

- Q: What is T&E in Accounts Payable?

ANS: T&E means Travel & Employee Reimbursement. When an employee travels for business, they can claim the expenses incurred during the business, and the T&E has to check the bills and reimburse them as per the company policy.

TDS and GST

1. Tax Deducted at Source

- Q: What is TDS?

ANS: TDS means Tax Deducted at Source. Under TDS, it is the liability of the service receiver to deduct TDS on behalf of the service provider and deposit the same amount to the government on or before the due date. We deduct TDS under sections 194C, 194I, and 194J.

194 C Standard for TDS on Contractor , the rate of Tax is 1% in case of individual & 2% in case of other than individual.

194J Standard for TDS on Rent , the rate of Tax is 2% in case of Plant and Machinery & 10% in case of Land and Building

194I Standards for TDS on professional & technical services. The rate of tax is 10% in case of of professional services & 2% in case of Technical Services.

If I talk about the exemption Limit that is 30000 in case of Single Invocie & 100000 in case of multiple invoice under section 194 C & 2,40,000 under section 194 I & 30,000 under section 194J. - Q: What is the due date of depositing TDS?

ANS: The 7th of the next month, and in the case of March, it is the 30th of April.

2. Goods and Service Tax

- Q: What is GST?

ANS: GST means Goods and Service Tax. It is an indirect tax. GST was Implemented on 1st July 2017 .

India adopted a dual model of GST. In the case of intra-state transactions, CGST & SGST is levied. In the case of inter-state transactions, IGST is levied.

At the time of processing a vendor invoice, we are eligible to take input in the form of input tax credit. GST rates are 0%, 5%, 12%, 18%, and 28% respectively.

There is an 18% tax on services (e.g., Airtel, insurance, legal services, etc.).

GST number is a 15-digit number starting with a 2-digit state code, followed by a 10-digit PAN number, the next digit represents the number of registered offices in a state, and the last two digits are kept by the government for their own use.

T-Codes for Vendor and GL Balance

Data Extraction from SAP to Excel

1. Exporting Data

- Q: How do you extract the data from SAP to Excel?

ANS: We need to click on List -> then Export -> Spreadsheet.

MIS Reporting

1. Management Information System Reporting

- Q: What is MIS Reporting?

ANS: Any information that we need to provide to the management is called MIS Reporting. For example, creditors report, cost center report, etc.

Month-End Activities

- Q: Do you participate in month-end activities?

ANS: Yes, I participate in various activities at month-end like clearing the vendor account, preparing the creditors report, and various expenses reports.

HR INTERVIEW Q/A

1. Introduction and Background for P2P (Accounts Payable)

1. Name: HI, I am Rahul

2. Location: I am from Uttarakhand and Currently reside in Delhi.

3. Qualification: I did my graduation in Commerce from Delhi University

4. Experience: I have a total experience of 2 years

5. Organization: Currently I’m working with Fork Strong Pvt. Ltd as accounts executive in the accounts payable department &

6. My Job Responsibilities are:

7. Verification of Invoice

8. 2 Way & 3 Way match of Invoice

9. Processing of Vendor in SAP

10. Check the PO & service agreement before processing the Invoice

11. Ensure all entries are recorded in the correct Ledger & Cost Center

12. Process both PO & Non-PO based Invoice

13. I Ensure all entries recorded as per GST

14. A Part from this I prepare vendor statements & reconciliations as well. & resolve vendor quires

IT Skills: - I am working on SAP & have a working knowledge of Excel

I have good verbal and written communication skills along with typing speeds of 40 words per minute

Family Background: - In my family, there are 4 members including me. my father, my mother my elder brother

Strength: Adaptability accuracy in serval environments and Working hard are my core strength. This is all about me Thanks

- Q: Why are you looking for a Job Change? (For Experienced)

ANS: For the sake of better opportunities and enhancing my area of domain (profile), I am looking for a job change. For personal and professional development, I am looking for a job change.

- Q: Why are you looking for a Job?

ANS: I have the skills to contribute to the growth of the organization. I feel that my skills are best suited for this position.

- Q: Where do you see yourself after 5 Years?

ANS: After 5 years, I will see myself as an AM or TL in this organization. After 5 years, I will see myself as TL with an important profile.

- Q: What is your short-term goal?

ANS: My short-term goal is to get this job and to accommodate myself in the new environment.

- Q: What is your long-term goal?

ANS: My long-term goal is to prove myself as an asset of the company by implementing the things that I learned from my previous experiences.

- Q: What skills will reach you to be a manager?

ANS: My decision-making ability, positive attitude, and learning attitude will reach me there.

- Q: What is your weakness?

ANS: I can't say NO to anybody/any work, but at the same time, it hampers my work as well. I can do 2 works simultaneously, but sometimes it affects my accuracy.

- Q: What is your current CTC (Cost to Company)/Salary?

ANS: 2.8 lakh per annum (22,500 per month).

- Q: Is this a fixed salary or is there any variable part involved in it?

ANS: It's all fixed.

- Q: Do you get your salary in the Bank or In-Hand?

ANS: In Bank.

- Q: Do you have the pay slips & appointment Letter with you?

ANS: Yes, I have 3 monthly salary slips, an appointment letter, and an experience letter.

- Q: What is your expectation?

ANS: 3.6 to 3.9 lakh per annum for experience. For fresher: 2.4 to 2.8 lakh.

- Q: Is it negotiable?

ANS: Yes, it is.

- Q: What is your notice Period?

ANS: It's 15 days.

- Q: Is it negotiable?

ANS: Yes, it is. Yes, I will try to join you soon.

- Q: Are you ready to work in the US Shift?

ANS: Yes, I am comfortable. Shift: UK: 12 PM to 9 PM, US: 5:30 AM to 2:30 AM,

AUS: 4 AM to 1 PM.

- Q: How will you commute to the office?

ANS: I have my own vehicle, and there is a shuttle service from my place to the office area, so that is not a problem at all.

- Q: Why should I hire you?

- Q: Why do you want to Join Accenture/Genpact?

ANS: It's a well-known brand and provides great amenities and environment to its employees. It will be a privilege for me to work with such a brand as everyone wants to be a part of it.

- Q: Did you ever try in Genpact before?

ANS: No.

Feedback

- Q: If I came to your office & give your feedback from your manager, what would he say?

ANS: He would say, Rahul is very positive, not only towards his work but also caring with a positive attitude. Whatever work is assigned to him, he does it with full dedication.

- Q: If your manager shouts at you, will you report to HR?

ANS: No, being a part of the team, we have to work together, so there is no need to highlight it to HR.

- Q: What is your achievement?

ANS: I was awarded the Star of the Month in Feb 2022 for clearing the backlog of invoices when a colleague left the organization.

AP/P2P Related – Q/A

1. Basic Concepts

- Q: What is Accounting?

ANS: Accounting is the process of recording, classifying, summarizing, and analyzing financial transactions in a useful way.

- Q: What is Accounts Payable?

- Q: What is P2P?

ANS: P2P means Procure (Purchase) to Pay.

- Q: Is there any difference between P2P & AP?

ANS: P2P is a cycle, and AP is a part of it.

2. P2P Cycle

- Q: What is P2P Cycle?

ANS: It means Procure to Pay Cycle. In P2P there are multiple departments involved & participating in procuring goods to realize payment to the vendor

Inventory Account Dr

To GRN/GR/IR Account (Goods Receipt Note) Goods/Invoice Received

GRN/GR/IR Account Dr.

To Vendor Account

[ Here GR/IR is cleared & payable is created]

On the basis of the payable created in the system payment team releases the payment & passes the accounting entry

Vendor Account DR

To Bank Account

[Here we need to clear the Vendor]

& Finally, we have to reconcile the vendor account & report to the management.

PR	ME51N
PRQ –	ME41
Maintain Quotation	ME47
Price comparison	ME49
Purchase Order	ME21N
Display/History PO	ME23N
GRN –	MIGO
INVOICE –	MIRO
PAYMENT –	F110 Automatic payment \| F53 Manual Payment

- Q: From where does our work start in the P2P cycle?

ANS: Our work starts with invoice processing in the P2P cycle.

Purchase Requisition and Purchase Order

- Q: What is Purchase Requisition?

- Yango Group: 500 per T-shirt

- Kid Line: 600 per T-shirt

- NC Accessory: 550 per T-shirt

The procurement team finalized Yango and created a purchase order.

- Q: What is a Purchase Order?

ANS: A PO is an agreement between the buyer and seller and is generated by the buyer. It contains:

1.	Required Quantity
2.	Agreed Price
3.	Description of Goods
4.	Tax Rate
5.	Bank Details of Vendor
6.	Payment Terms
7.	Place of Delivery, etc.

- Q: What is the relevance/importance of PO?

ANS: Since it is an agreement between the buyer and seller, in case the buyer denies procuring the material, it acts as a legal agreement for further processing.

- Q: What are the types of PO?

ANS: There are four types of PO:

1. Standard PO 2. Contract PO 3. Planned PO 4. Blanket PO

It is mentioned in the invoice, normally on the top of the PO number.

Standard PO:	It is the most commonly used PO and contains all the information like price, quantity, description, payment terms, delivery date, bank details of the vendor, etc.	For example, 200 kg of material at 14/kg to be delivered tomorrow.
Contract PO:	A Contract PO contains vendor details, and payment terms, but the product or services to be purchased are not specified. It is an agreement b/w buyer & seller over a predefined material or service over a period of time.	For example, 2000 T-shirts have been delivered by Yango Group at the IBM plant. It will be counted and stored by the storekeeper.
Planned PO:	We know the price and quantity in this PO but don’t know the delivery date. We don’t immediate requirement for goods/services but in the future, we will need it	For example, we need 10 computers at 20,000 each but don’t know when we need it
Blanket PO:	This is normally used for long-term purchases Items are used for day-to-day usage or MRO Maintenance, Repair & operations.	For example, Rent, Maintenance, etc.

- Q: How to check the PO in SAP?

ANS: There is a T-code ME23N that is used to display the PO.

- Q: How & Why do we check the PO history in SAP?

Goods Receipt and Invoicing

- Q: What is GR/IR or MRN or GRN?

ANS: It is a written acknowledgment that confirms that goods or invoices have been received. – GR/IR means Good Receipt/ Invoice Receipt

- GRN means Goods Receipt Note

- MRN means Material Receipt Note

- Q: What is Invoice? What does an Invoice Contain?

ANS: An invoice is a non-negotiable commercial instrument issued by the seller to the buyer. It contains:

1.	Invoice No
2.	Invoice Date
3.	Name & Address of both parties
4.	GST No of both parties
5.	Description of Goods
6.	Price/Quantity/Rate
7.	Tax Rate
8.	Taxable Value
9.	Tax Amount
10.	Total Value
11.	Invoice should be signed by the authorized person.

- Q: What is Performa Invoice?

ANS: A Performa Invoice is like a quotation issued by the seller to the buyer before delivering goods or services. We can’t process the Performa invoice at any cost.

- Q: How do you differentiate the Invoice & the Performa Invoice?

ANS: It is mentioned over the invoice whether it is an invoice or a Performa Invoice.

- Q: Why do we not process Performa Invoice?

ANS: Because it is a quotation, but sometimes it is used for releasing the advance payment.

- Q: What are the types of Invoices?

ANS: There are two types of invoices:

1. PO Based Invoices (MM-FI) – MIRO/MIR7

2. Non-PO Based Invoices (FI) – FB60/FV60

- PO Based:

An invoice where material is involved and a PO is created before delivering goods or services.

For example, 100 kg of material, 500 T-shirts, etc.

- Non-PO Based:

An invoice where the buyer gets the services first and will pay for the bill that the seller sends.

For example, Rent, Freight, Maintenance, etc.

2-Way Match:

Where the price and quantity in the invoice should match with the PO.

- INVOICE = PO

Rent Agreement, 500 kg of material.

3- Way Match:

Where the price and quantity in the invoice should match with the PO and the GRIR report.

- INVOICE = PO = GRN

500 kg of material and 300 T-shirts, etc.

4-Way Match:

Where the price and quantity in the invoice should match with the PO along with the GR/IR report and the quality report.

INV. = PO = GRN = QUALITY REPORT

- Q: What is the tolerance limit?

ANS: It allows us to process any invoice in SAP. 30 Lakh.

2-Way Match is for services and materials

3-Way Match is for materials only.

- Q: You have a Material Invoice. Will you do a 2 Way or 3 Way Match or both?

ANS: We will do both 2 Way and 3 Way Match.

- Q: You have a Service Invoice of Rent Agreement. Will you do a 2 Way or 3 Way Match or both?

ANS: We will do only a 2 Way Match as it is a service.

- Q: How do you verify the Non-PO Based Invoice?

ANS: We can verify the Non-PO Based Invoice/Service Invoice from the Service Agreement.

- Q: What is the difference between MIGO & MIRO?

- MIGO is done by the storekeeper at the time of receiving material and services.

MIRO is done by the invoice processing team.

- In MIGO, the accounting entry would be:

- Inventory Account Dr

- To GR/IR Account

- In MIRO, the accounting entry would be:

- GR/IR Account Dr

- To Vendor Account

- Q: on which ERP are you working on? ERP full form?

Ans: I am working on SAP. ERP stands for Enterprise Resource Planning

- Q: Which version of SAP are you working on?

Ans: I am working on S4 Hana | Systems, Applications, and Products in Data Processing

- Q: On which module SAP are you working on?

Ans: I’m working on the SAP FI/CO (Financial Accounting and Controlling) Module in SAP

- Q: What is the very first accounting entry created in the P2P Cycle?

ANS: The very first accounting entry is created at the time of material receiving, and the entry would be:

- Inventory Account Dr

- To GR/IR Account

- Q: What is the journal entry created at the time of the creation of the Purchase Order?

ANS: No journal entry is created at the time of the creation of the PO.

- Q: Who creates the Purchase Order?

ANS: The buyer creates the PO by the T-code ME21N.

- Q: What is the difference between PO & SO?

ANS:

- PO is created by the buyer and it is created by ME21N in SAP

- SO is created by the sales order. while SO is created by VA01 in SAP.

- Q: What is the difference between FB60 & FV60?

ANS:

- FB60 is used to post the vendor invoice in SAP while FV60 is used to park the vendor invoice in SAP.

- In FB60, the impact/value goes to FBL1N & FBL3N while in FV60, the impact/value gets held until it is posted by the manager/TL.

- In FB60, there is no maker and checker concept while in FV60, there is a maker and checker concept.

- Q: what is the T Code to check the PO?

Ans: we can check the PO by ME23N or ME2L.

- Q: While Processing the Vendor invoice, you are getting an error of invoice value exceeding the PO so what you do in that case?

Ans: In that case, we need to approach the purchase team & ask them to update the PO

- Q: Do you process the PO Based Invoice or Non-PO Based Invoice?

ANS: I process both the invoices, PO and Non-PO Based Invoice.

- Q: What is the process to process the PO Based Invoice?

invoice number, invoice date, amount, narration, and in the footer part, we have to enter the PO number. A GR/IR line is populated, and we have to save the entry.

- Q: What are the reasons why an invoice is put on hold? What are the challenges while processing any invoice?

ANS:

1. 2-Way Mismatch: Sometimes there is a two-way mismatch, and we need to approach the vendor and ask them to share the correct invoice.

2. Image not cleared: In this case, we can’t process the invoice.

3. Sometimes are GST of the buyer is missing in so we need to approach the vendor & ask him to share the rectified invoice.

4. Sometimes we receive the Performa invoice rather than the invoice, which we cannot process.

5. Sometimes the approval of the concerned department is missing, and we need to approach the concerned department and ask them to approve the invoice.

- Q: Before processing any invoice, what parameters do you check?

ANS: Before processing any invoice, we need to check the tolerance limit, 2 Way Match, 3 Way Match, all commercial parameters, and the approval of the concerned department.

- Q: What is a debit & credit note?

ANS: A Debit note is issued where there is Purchased return of goods and it is issued by buyer. for Example, short fall of goods or defected goods by provide by seller.

Debit note also denotes that we are decreasing the Invoice value. Debit Note is created by FB65

Vendor A/c Dr.

To Purchase Return Cr.

Credit Note: Credit note is issued where there is sales Return of Goods and it’s issued by Seller. For Example, a Defect in goods or wrong delivery of goods.

Credit note also denotes that we are decreasing the sales value. -Credit Note is created by FB75.

Sales Return A/c Dr.

Customer A/c Cr.

Duplicate Invoices and T-Codes

- Q: How do you check the duplicate invoice?

ANS: There are certain methods to check the duplicate invoice:

1. As we maintain the Excel tracker for vendor invoices, when we enter the same invoice number of the particular vendor, the cell gets highlighted as we apply conditional formatting.

2. SAP doesn't accept the same invoice number as same the vendor, so it shows an error that the invoice has already been posted against the document number.

- Q: On Which T Codes you are Currently Working On?

ANS: I am working on FB60, MIRO, ME23N, FBL1N, FBL3N, FB02, and FB03.

Vendor Management

- Q: What is the T-code for creation vendor in sap

Answer: XK01. In XK01 Vendor is Created at 3 levels. General level, Company Code Level, and Purchase Organization level.

- Q: What is the T-Code for Processing Vendor Invoice in SAP?

ANS: For PO-based invoices (Material Invoice) we do it through MIRO &for NON-PO based invoice (Service Invoice) we do it through FB60.

- Q: You Park the Invoices or Post the Invoices?

ANS: Park the Invoices via FV60 and Post the invoices Via FB60.

- Q: What is Vendor Master data creation in SAP?

- Q: How do you edit the vendor in SAP?

ANS: XK02 is used to edit the vendor details.

- Q: What are Payment terms?

ANS: Payment terms are the terms between the buyer and seller for releasing the payment. It could be immediate, 30 days, or 60 days.

- Q: What is the Payment method?

ANS: Payment method is the way of releasing the payment. It could be direct transfer or issuing a cheque.

- Q: What is Base Line Date?

ANS: The base line date is the expected date of payment.

- Q: Do you have any experience releasing the vendor payment?

ANS: Yes, I have experience in releasing the vendor payment. F110 is the T-code for releasing the payment. For payment, there should be a payable entry in our system, and the payable should be due.

- Q: What is the process to release the vendor payment

1.	Parameter	First, we have to set the parameter. In the parameter, we have to mention the company code, vendor, payment method, etc., and save it.
2.	Proposal	Once the parameter is set, we have to run the proposal.
3.	Payment	After the proposal, we have to run the payment.

- Q: You have released the payment twice. What should you do in that case?

ANS:

1. You can adjust the payment with a future invoice.

2. Or we can refund the vendor.

- Q: When do you release the vendor payment in your current organization?

ANS: We have four payment cycles: 1 for urgent payments like rent, tax, and utility bills, and the rest on the 10th, 20th, and 30th of every month.

- Q: What is A Block & R Block in vendor payment?

ANS: In A Block, we have booked the invoice but later we check the material need to return as it was defected. In that case we need to block the vendor & this block is called A Block.

R Block, invoice yet to be verified.

- Q: what is the difference between a Parked invoice & Blocked invoice?

Ans: Parked invoice means when invoice is parked or hold for further checking & blocked invoice means invoice has been posted but blocked for payment.

- Q: What is Bill to Address, Ship to Address, Sold to Address & payee?

ANS:

- Bill to Party: Where invoices need to be sent.

- Ship to Party: Where the product needs to be delivered.

- Sold to Party: The customer who places the order.

- Payee: Who makes the payment.

Daily Routine and Additional Activities

- Q: What is your daily routine?

ANS:

1. I start my day at 10 AM.

2. Invoice processing (both PO & Non-PO).

3. Hold the invoice if needed.

4. Prepare the statement & reconciliation.

5. Resolve vendor queries.

- Q: Apart from invoice processing, what other activities do you cover in your current organization?

ANS: Apart from invoice processing, I also prepare the vendor statement and reconciliation and sometimes resolve vendor queries.

Golden Rules of Accounting

ANS: There are three Golden Rules of Accounting:

-Nominal Account:	- Personal Account:	- Real Account:
- Dr: all expenses and losses	- Dr: the receiver	- Dr: what comes in
- Cr: all income and gains	- Cr: the giver	- Cr: what goes out
Complete P&L comes under it.	Natural person, Artificial person	Complete B/S comes under it.
Example: Rent, Salary, Freight etc	Creditors and Debtors are included.	. Fixed Assets, Bank, Tax, etc.

Invoice Receipt

- Q: Did you receive the invoice by mail or hard copy?

ANS: I receive the soft copy of invoices on mail.

Invoice Processing Efficiency

- Q: How many invoices do you process in a single day?

ANS: 70 to 80 invoices per day.

- Q: How long will it take to process a single invoice?

ANS: 4 to 5 minutes, as we have to check the 2 Way Match and other parameters before processing the vendor invoice.

Error Handling

- Q: If the entry is posted incorrectly, then what would be the next step?

ANS: If I post the entry incorrectly in SAP, then in that case, I need to approach the manager to reverse the said entry, and he will confirm with me over mail regarding the status.

- Q: What is the T-code to reverse the wrong entry?

ANS: FB08 is used to reverse the entry in SAP.

Cost Center and GL

- Q: What is Cost Center?

ANS: Cost Center is used to allocate the cost of the company department-wise. Cost Center is always assigned to expenses. Examples:

Admin	1000
Operations	1000
Marketing	1000
Sales	500

- Q: What is the difference between Cost Center and GL?

Cost Center:	Used for internal reporting.
General Ledger:	Used for external reporting.

Vendor Statements and Reconciliations

Vendor Statement

- Q: What is a vendor statement?

ANS: A vendor statement is a statement that we need to provide to the vendor for a particular period so that the vendor matches his books with the statement provided.

- Q: What is the objective of preparing the vendor statement?

ANS: The objective is to match both the books of the seller and the buyer and avoid any discrepancies.

- Q: How do we prepare the vendor statement?

- Q: When do you prepare the vendor statement?

ANS: We prepare the vendor statement on a monthly basis, but sometimes the vendor asks for the statement in between the months, so we have to provide it accordingly.

- Q: What is Layout & how do we make it?

- Q: How do you get the vendor statement in SAP?

- Q: What data do we need to provide to the customer?

ANS: We need to provide the data like invoice number, invoice date, amount, remarks to the vendor statement.

2. Vendor Reconciliation

- Q: What is vendor reconciliation?

- Q: What are the reasons for preparing the vendor reconciliation?

ANS:

- Sometimes the purchase invoice and the sales invoices don’t match with the vendor statement.

- Sometimes the payment received and the payment released don’t match.

- Sometimes the debit and the credit note do not match.

- Q: How long will it take to prepare the vendor statement or reconciliation?

ANS: It depends on the number of line items. Normally, for a three-month statement or reconciliation, it takes around 1 hour to prepare the data.

- Q: What is the difference between vendor statement & vendor reconciliation?

SAP T-Codes

- Q: What are the T Codes for Vendor & GL Balance?

ANS: For Vendor, it’s FBL1N, and for GL, it’s FBL3N.

Handling Vendor Queries

1. Query Volume and Types

- Q: How many queries do you receive from vendors?

ANS: Normally, we receive 12 to 15 queries from vendors daily.

- Q: What type of queries do you normally receive from vendors?

ANS: We receive queries pertaining to payment status, invoice status, and vendor statement.

2. Response Time and Escalation

- Q: What is the TAT or the SLA for resolving the queries?

ANS: The TAT (Turn Around Time) or the SLA (Service Level Agreement) to resolve the vendor query is 48 hours, but we have to respond to the mail or acknowledge the mail at the same time.

- Q: What if you fail to resolve it within the TAT?

ANS: Then it would be escalated to the team leader.

Process Improvement Suggestions

Suggestions for Management

- Q: Do you have any idea or suggestion that you have given to the management for streamlining the process?

Accounting Terms

1. Prepaid and Outstanding Expenses/Income

- Q: What is Prepaid Expense?

ANS: Prepaid Expense is the expense that is paid in advance. For example, Rent, Insurance, AMC (Annual Maintenance Cost).

- Prepaid Expense Account Dr (B/S Assets)

- To Bank Account

- Q: What is prepaid Income?

ANS: Prepaid Income is the income received in advance. For example, Rent, Insurance, etc.

- Bank Account Dr

- To Prepaid Income (B/S Liabilities)

- Q: What is outstanding Expense?

ANS: Outstanding Expense is the expense that has been booked but not yet paid.

- Expense Account Dr

- To Outstanding Expense Account (B/S Liabilities)

- Q: What is Outstanding Income?

ANS: Outstanding Income is the income that is earned but not yet received.

- Outstanding Income Account Dr (B/S Assets)

- To Income

2. Deferred Revenue Expenditure and Contingent Liability

- Q: What is Deferred Revenue Expenditure?

ANS: Deferred Revenue Expenditure is the expenditure incurred during an accounting period, but the benefit is to be derived over the period. For example, Advertisement in a metro.

- Q: What is Contingent Liability?

ANS: Contingent Liability is a liability or potential loss that may or may not occur depending on the outcome of an event, like a product warranty.

3. Accrued Expense

- Q: What is Accrued Expense?

ANS: Accrued Expense is the expense in which we have taken the service, but the bill against the said service has not been booked in our accounting system.

- Expense Account Dr

- To Accrued Expense Account (B/S Liabilities)

4. Fixed Assets and Depreciation

- Q: What is Fixed Assets?

ANS: Fixed Assets are assets used for a longer period and cannot be converted into cash easily or quickly.

- Fixed Assets Account DR

- To Vendor Account

- Q: What is Depreciation?

ANS: Depreciation is the reduction in the value of fixed assets due to wear and tear.

- Depreciation Account Dr

- To Accumulated Depreciation Credit

- Q: What is Accumulated Depreciation?

ANS: Accumulated Depreciation is the total amount of depreciation calculated during the financial year.

- Q: What are the methods of depreciation?

ANS: There are two types of depreciation:

1. Straight-line method

2. Written down value method

5. Bank Reconciliation

- Q: What is Bank Reconciliation?

ANS: Bank Reconciliation is the process of matching the closing balance of the bank statement with the closing balance of the bank ledger.

MS-Excel Related – Q/A

Excel Proficiency

- Q: How comfortable are you with Excel?

ANS: I am very comfortable with Excel. I perform basic to advanced operations including VLOOKUP, SUMIF, Pivot Table, etc.

- Q: How will you rate yourself out of 10 in Excel?

ANS: I will rate myself as 7.5 to 8 as Excel is very wide and it is difficult to cover the entire Excel.

Excel Functions

- Q: What is VLOOKUP?

ANS: VLOOKUP is used to retrieve data from a range of cells based on the column number. The formula is: =VLOOKUP(Lookup Value, Range, Column No, Exact Match)

- Q: What is the drawback of VLOOKUP?

ANS: If there are duplicate values in the data, VLOOKUP will pick the first one rather than the second one and give an incorrect result.

- Q: What is SUMIF?

ANS: SUMIF is used to add all the numbers in a range of cells based on criteria. The formula is:

=SUMIF(Range, Criteria, Sum Range)

- Q: What is Pivot Table?

ANS: Pivot Table is used to organize, sort, and make the data presentable.

The shortcut is Alt + N + V + T.

Billable and Non-Billable Expenses

1. Expense Types

- Q: What is billable & Non-Billable Expense?

ANS:

- Billable Invoice: The invoice that pertains to the work directly related to the client project and can be reimbursed by the client.

- Non-Billable Invoice: The invoice that cannot be directly billed to clients.

T&E in Accounts Payable

1. Travel and Employee Reimbursement

- Q: What is T&E in Accounts Payable?

TDS and GST

1. Tax Deducted at Source

- Q: What is TDS?

194 C Standard for TDS on Contractor , the rate of Tax is 1% in case of individual & 2% in case of other than individual.

194J Standard for TDS on Rent , the rate of Tax is 2% in case of Plant and Machinery & 10% in case of Land and Building

194I Standards for TDS on professional & technical services. The rate of tax is 10% in case of of professional services & 2% in case of Technical Services.

ANS: The 7th of the next month, and in the case of March, it is the 30th of April.

2. Goods and Service Tax

- Q: What is GST?

ANS: GST means Goods and Service Tax. It is an indirect tax. GST was Implemented on 1st July 2017 .

India adopted a dual model of GST. In the case of intra-state transactions, CGST & SGST is levied. In the case of inter-state transactions, IGST is levied.

At the time of processing a vendor invoice, we are eligible to take input in the form of input tax credit. GST rates are 0%, 5%, 12%, 18%, and 28% respectively.

There is an 18% tax on services (e.g., Airtel, insurance, legal services, etc.).

T-Codes for Vendor and GL Balance

Data Extraction from SAP to Excel

1. Exporting Data

- Q: How do you extract the data from SAP to Excel?

ANS: We need to click on List -> then Export -> Spreadsheet.

MIS Reporting

1. Management Information System Reporting

- Q: What is MIS Reporting?

ANS: Any information that we need to provide to the management is called MIS Reporting. For example, creditors report, cost center report, etc.

Month-End Activities

- Q: Do you participate in month-end activities?

ANS: Yes, I participate in various activities at month-end like clearing the vendor account, preparing the creditors report, and various expenses reports.

Posted by Editorial Team on March 24, 2025 in

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