Accounts Payable Interview Questions
Question 1. Explain About Accounts Payable?
Accounts payable is nothing however money which an organization must pay to distributors for items and companies bought on credit score.
Accounts payable is a present legal responsibility of an organization.
This merchandise seems on legal responsibility facet of a steadiness sheet.
Question 2. What Is Account?
Account is ‘the artwork of classifying, analysing, Recording and summarising monetary data’, to the administration.
Question 3. What Is The Difference Between Billable And Non-billable Expenses?
Billable bills are the bills incurred by you on behalf of your buyer in performing duties / service and provide. These bills are recoverable out of your buyer by means of billing.
Non-billable bills are the bills incurred by you for perform your personal business / duties and obligations.
Question 4. What Steps Would You Take Before Approving An Invoice For Payment?
Following steps must be taken:
Validate the bill as soon as it’s matched for checking any holds.
If workflow is carried out, provoke approval for the bill. Once the bill is accepted/Approval not required (standing in case WF is just not carried out) you’ll be able to go for funds.
Create accounting after approval of bill.
Finally for funds you could format, construct.
Question 5. What Is The Difference Between Consignor And Consignee?
Consignor is the one who is the proprietor of the products and who ship the products to the consignee.
Consignee is the one who receives the products and he simply possesses the products and never the proprietor.
Question 6. What Do You Mean By Wcc?
Winter Compensation from Contributions.
Question 7. What Is An Ifa?
Institute of Finance & Accounts.
Question 8. What Do You Understand By Intercompany Settlement?
A key useful space of SAP for Utilities that helps cross-company trade of settlement information based mostly on worldwide requirements similar to EDI, XML, and Microsoft Excel.
Intercompany information trade manages information switch between retailers, distributors, and impartial service operators with particular regard to the necessities in deregulated markets.
Question 9. What Is Fbt (fringe Benefit Tax)?
The tax payable on a non-salary profit supplied to an worker or an affiliate of the worker. The employer is liable to pay any FBT and will select to get better the FBT quantity from the worker.
Question 10. What Is Debit And Credit From The Banks Point Of View?
Credit what is available in.
Debit what goes out.
Question 11. What Is Meant By Liabilities?
Liabilities are what all you owe from the financial institution on notes payable or in different phrases it’s:
Question 12. What Steps Would You Take Before Making A Payment?
We ought to confirm that any advances have been made.
See that each one the companies/items delivered in accordance with invoice.
Any question is there to attend on that finally may be made fee.
Question 13. What Are Steps To Define Supplier?
Supplier ought to observe the test record.
He ought to create confidence within the shopper thoughts
Services to be achieved (fulfilled in time)
Services to be achieved in accordance the specification of the shopper.
He must be positioned the one other order by doing the above three steps.
Question 14. What Is The Meaning Of Invoice?
Invoice is a press release which comprises the below talked about particulars compulsorily:
Name and handle of the particular person making the bill ( Seller of products and repair)
Name and handle of the particular person to whom bill is made. ( Buyer of products and repair)
Description of products / companies concerned
Applicable charges and taxes with percentages
Rate of the products / companies
Quantity of the products and companies
Quality or some other specs
Price / Value of the products and companies
Invoice should be signed by the particular person making it
Terms and situations of creating the fee.
Question 15. What Is The Difference Between Eft & Wire?
The Payment strategies Electronic and Wire are modes of Electronic Fund Transfers . These modes may differ within the codecs and paperwork concerned on the website degree. WIRE is a type of outdated technique utilized by distant websites for funds in ORACLE. Jargon is perhaps totally different however the precise mode is similar of both of them.
Question 16. What Is The Difference Between Sap Memory And Abap Memory?
SAP Memory: Global, user-related reminiscence that extends past transaction limits. Access to the SAP reminiscence is by way of SPA/GPA parameters.
ABAP Memory: Memory space inside every principal session, which may be accessed by applications utilizing the EXPORT and IMPORT statements and which stays accessible utilizing a collection of program calls (name sequence).
Question 17. How Does The Payment Mechanism Work?
The open objects of an account can solely be cleared when you post an similar offsetting quantity to the account. In different phrases, the steadiness of the objects assigned to one another should equal zero. During clearing, the system enters a clearing doc quantity and the clearing date in this stuff. In this manner, invoices in a vendor account are indicated as paid, and objects in a financial institution clearing account are indicated as cleared. You typically use the fee program to clear invoices. Manual clearing of open objects is due to this fact not normally mandatory. However, you’ll generally should clear objects manually if, for instance, you obtain a refund out of your vendor or you might have arrange a direct debit process.
Question 18. What Do You Understand By Open Item Managed Account?
Open merchandise administration ensures that each one objects that haven’t but been cleared can be found within the system. Only after each open merchandise in a doc is cleared can a doc be archived.
Question 19. 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 fee to provider is handled as Advance paid to provider. This will present as debit steadiness in provider account.
Supplier can ship the fee by means of cheque / demand draft with out adjusting in his subsequent payments.
Question 20. What Is The Full Form Of Sox In Accounts?
Sarbanes Oxley Act.
Question 21. What Is Three Way Matching Of Invoice? What Is The Difference Po Able Invoice And Non Po Able Invoice?
PO bills are paid for the core business actions. e.g a meals manufacturing co. can pay its normal costs for Raw materials freight, plant upkeep and so on.
A non PO expenditure is the one which is fee for its non core actions e.g fee of utility payments e.g phone costs, electrical energy invoice.
for normal transactions of core business transaction a PO is created i.e. Purchase order# is created & non PO is for non core actions.
Question 22. What Is A Parked Report?
You can use doc parking to enter and retailer (park) incomplete paperwork within the SAP System with out finishing up in depth entry checks.
Question 23. What Is Account Payable? How We Pass The Entries In Account Payable?
Account payable is the excellent steadiness that we should pay to the third occasion or suppliers.
We cross the entries in account payable from two sides: buy order and basic ledger.
Purchase order module will probably be posted after materials order has been arrived in warehouse and mixing with bill plus associated paperwork which were accepted by licensed particular person.
General ledger usually from service entry the place it should be connected by service settlement between firm and third occasion.
Question 24. What Are The Types Of Assets?
There are two kinds of property they’re fastened property & present property.
Question 25. What Is Debit And Credit From The Customer Point Of View ?
debit means “receivable” & credit score means “payable”.
Question 26. What Is Debit And Credit From The Banks Point Of View ?
In Banks perspective debit means you might have deposited money within the financial institution . and credit score means you might have withdraw money from the banks.
Question 27. Can You Give A Sample Process Flow For Procure To Pay Cycle?
Step1: Receipt of Invoice and items
Step2: QC approval
Step3: Verification with po phrases
Step4: creation of legal responsibility
Step5: fee after due date.
Question 28. What Is The Meaning Of Grn?
GRN means items receipt notes ,it’s typically utilized in manufacturing industries for checking of bought of uncooked supplies .
GRN comprises the next particulars.
Ordered amount .
Defective amount in obtained amount .
Quality requirements particulars.
Question 29. What Items Of Information Do You Need Before You Can Approve An Invoice For Payment?
1. Have the products been obtained in good order ?
2. Is the amount/worth appropriate ?
3. Were you anticipating any low cost ?
4. Is the supply cost appropriate ?
Question 30. 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 fee to provider is handled as Advance paid to provider. This will present as debit steadiness in provider account. Supplier can ship the fee by means of cheque / demand draft with out adjusting in his subsequent payments.