pact

 

I'll provide answers to these questions one by one. Here’s a structured response:

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Accounts Payable Interview Questions & Answers

1. Introduction - Total work experience and job profile

Answer:
Currently, I have been working with pan business as an Account Executive from last four years.

& my Job Responsibilities are:-

1.  I do validation & Verification of Invoice

2.  2 Way & 3 Way match of Invoice

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

4.  Ensure all invoices are posted in the correct GL & Cost Center

5.  Process both PO & Non-PO based Invoice

6.  Check Statutory compliance like TDS & GST

7.  I prepare customer statements & reconciliations as well.

8.  I also have Experience of releasing the vendor payment.

9.  I have a handhold on various activities of P2P Cyle

 

experience in data management and financial operations. My role primarily involves processing invoices, handling accounts payable, reconciling financial transactions, and ensuring compliance with company policies. I have experience working with accounting software and have a good understanding of financial reporting.

2. Can you explain the accounts payable process? (P2P cycle)

Answer:

It means Procure to Pay Cycle. In P2P there are multiple departments involved & participation in procuring goods to realizing payment to vendor

 

P2P Cycle Starts with creating the Purchase requisition then we have to explore the vendor & get quotations from the vendor, on the basis of 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

 

Inventory Account Dr

To GRN/GR/IR Account

(Goods Receipt Note) Goods Received/ Service 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 & 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 release the payment & pass 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.

 

3. What are some common challenges in accounts payable?

Answer:
Some common challenges in AP include:

• Invoice discrepancies (wrong amounts, missing POs)
• Late payments leading to penalties
• Duplicate invoices or payments
• Fraud risks
• Inefficient approval processes
• Currency exchange issues for international transactions
• Compliance with tax regulations

4. Do you have knowledge of SAP-T code?

Answer:
Yes, SAP T-codes are transaction codes used to execute specific functions in SAP. Some important T-codes for Accounts Payable include:

1. FBL1N – Vendor Line Items Display
• This transaction code is used to display all line items related to a vendor, including open, cleared, and parked documents. It helps in tracking vendor transactions and payments.
2. FBL3N – GL Line Item Display
• This T-code allows users to view general ledger (GL) account line items. It is useful for checking transactions recorded under specific GL accounts.
3. FB60 – Non-PO Invoice Booking
• This is used to post an invoice directly to a vendor without referencing a Purchase Order (PO). It is commonly used for expenses like rent, utilities, and one-time vendor payments.
4. MIRO – PO Invoice Booking
• Used to book vendor invoices that are linked to a Purchase Order (PO). It performs a three-way match (PO, GRN, and Invoice) before processing the payment.
5. MR8M – PO Entry Reversal
• This is used to reverse a previously posted invoice related to a purchase order in case of incorrect postings or duplicate entries.
6. FB08 – Non-PO Reversal
• This T-code is used to reverse a financial document that is not linked to a Purchase Order, such as a manually posted invoice or an incorrect accounting entry.
7. ME23N – Display Purchase Order
• Allows users to view details of a Purchase Order (PO), including line items, vendor details, and approval status.
8. F-44 – Vendor Account Clearing
• Used to clear open items in a vendor’s account, ensuring that payments and invoices are properly settled.
9. XK03 – Display Vendor Information
• This T-code is used to display vendor master data, including contact details, banking information, and payment terms.
10. F110 – Payment Run

• Automates the payment process for vendors. It is used to process multiple invoices at once based on due dates and payment terms.

11. FB03 – Display Document

• This T-code is used to view the details of an already posted accounting document, including journal entries and financial transactions.

 

5. Are you okay with Australian shift and 5-day RTO?

Answer:
Yes, I am open to working in the Australian shift and adhering to the 5-day RTO policy.

6. What do you understand from indexing?

Answer:
Indexing of an invoice means arranging and storing invoices in a proper way so that they can be found easily. Each invoice is given a unique number or code and is sorted based on details like date, vendor name, or amount. This helps in quick searching and better record-keeping.

7. Which accounting software are you familiar with? (SAP S4 Hana is preference)

Answer: I am familiar with accounting software like SAP S4 Hana, Tally, and Excel for financial management.

8. How do you ensure accuracy when processing invoices?

Answer: To ensure accuracy in invoice processing, I follow these steps:

• 3-way matching (PO, GRN, Invoice)
• Cross-verifying invoice details (amount, vendor details, due date)
• Checking for duplicate payments
• Following company policies for approvals
• Regular reconciliations to identify discrepancies early
• Using automation tools for invoice scanning and validation

9. Describe a time when you identified an error in an invoice or payment process. How did you handle it?

Answer:
Once, I noticed an invoice with a duplicate entry during reconciliation. I immediately flagged it and verified the original payment records. After confirming the error, I informed my manager and coordinated with the vendor to avoid double payment. We then adjusted the records accordingly.

10. How do you handle discrepancies between purchase orders and invoices?

Answer:
If a discrepancy is found: I compare the invoice with the PO and GRN, identify the issue, and communicate with the vendor or relevant internal teams to resolve it, requesting a corrected invoice if necessary.

1. Verify supporting documents (PO, GRN, invoice)
2. Contact the vendor for clarification
3. Escalate to the procurement team for approval or correction
4. Adjust the invoice before processing payment

11. Journal Entry at the time of invoice booking

Answer:
When an invoice is booked:
Dr. Expense Account / Inventory Account
Cr. Accounts Payable (Vendor Account)

12. What is Accounts Payable KPI?

Answer:
Key Performance Indicators (KPIs) for AP include:

• Invoice Processing Time
• Payment Accuracy Rate
• Cost per Invoice Processed
• Days Payable Outstanding (DPO)
• Discounts Captured vs. Missed
• Duplicate Payment Rate

13. What do you understand from the open debit balance in a vendor account?

Answer:
An open debit balance in a vendor account indicates that the company has overpaid the vendor or there is a credit memo issued by the vendor that needs to be adjusted in future payments.

14. What do you understand from the Debit Note and Credit Note?

Answer:

• Debit Note: Issued by the buyer when returning goods or requesting a price reduction.
• Credit Note: Issued by the seller to acknowledge a reduction in the amount due from the buyer.

15. Can we make an advance payment to a vendor? If yes, what would be the journal entry?

Answer:
Yes, advance payments can be made to vendors.
        Dr. Advance to Vendor (Asset Account)
                Cr. Bank Account

When the invoice is received, it is adjusted against the advance.

16. What is the process of T&E? And what would be the journal entry if we are giving advance to an employee?

Answer:
T&E (Travel & Expense) process involves:

• Employees submitting travel and expense reports
• Verification and approval
• Reimbursement processing

Journal Entry for Advance to Employee:
            Dr. Employee Advance (Asset Account)
                Cr. Bank Account

When settled:
        Dr. Expense Account
                Cr. Employee Advance Account

17. Have you given any improvement ideas in your current role?

Answer:
Yes, I suggested implementing Excel automation for invoice tracking, which reduced manual errors and improved processing speed.

18. What do you understand from the POT?

Answer:
POT (Point of Taxation) determines the time when tax liability arises in a transaction. It helps in ensuring tax compliance under GST regulations.

 

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Tom Stokes

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