1. What is VAT (Value Added Tax)?
Value-Added Tax (VAT) is a tax on consumer spending. It is collected by VAT-registered traders on their supplies of goods and services effected within the State, for consideration, to their customers
2. What is end to end AP process explain briefly?
Accounts Payable process starts with Purchasing and ends payments to Vendors. Workflow is: Purchasing team recieve requests-Initiate for quotations from vendors-Purchasing team creates Purchase Order, once the quotation is finalized and obtained all required approvals-PO copy would be sent to Vendor-Vendor will raise invoice and submit to accounts payable-Accounts Payable key invoice into ERP-Once the invoice fall on due invoice will get paid.
As this process start with Procurement (P) and ends with Payments (P), hence this process also named as to P2P.
3. Do you know how to debit the bank cash book upon withdrawn of cash from the bank?
Cash A/c- Real A/c- Debit what comes in & credit what goes out.
Cash withdrawn mean cash comes in so it will be debited
Bank A/C- personal A/C - Debit is receiver & Credit is giver
Bank is giver amount so it will be credited
Contra Entry
Dr.Cash A/C
Cr. Bank A/C
4. What is debit from the banks point of view?
When we have received amount from bank that is debit to banker.
5. What is three Way Matching Concept?
When we creating the invoice in 3-way matching invoice price and po price receipt price should be match.
6. Accounts payable interview questions part 2:
► What is the tolerance limit with respect to invoice processing. ( how much currency)?
► What is "End to End" AP process?
► What is Down payment. How it is knocked off?
► What is payment order ? Why it is useful to business?
► What is duplicate posting? How will you identify whether it is duplicate in SAP?
► What is accrual concept? How month end gets closed smoother?
► Explain AP concept from Supplier providing invoice till payment? (Scanning till payment)?
► If an invoice is paid twice, what does AP team do?
► What is the advantage of using SAP?
► What is Dashboard in SAP?
7. Accounts payable interview questions part 1:
► Explain Accounts payable process and its impact to business?
► What is PO invoice, Non-PO invoice, Intercompany invoice. Explain the difference & list some examples?
► What is invoice processing ? What are the mandatory fields to be entered while processing invoices?
► What is GSM and GPM ? Give its abbreviation and explain the concept ?
► Which version you used in SAP & BPopen. Explain its features?
► What is 3-way matching system in AP ?
► What is Subsequent debit, Subsequent credit & Credit memo?
► Why credit memo is used and under what circumstances it is applicable?
► What is SLA & KPI in BPO terms ? Explain its importance to AP?
8. Tell me what mandatory fields to be entered while processing invoices?
To whom we will pay: Address, Bank Account Details, If tax effects or not(Service Tax, Vat & Reverse Service Tax) & TDS , Goods / service description etc.
For Services, the Po is not required. It is based on Agreement. In the Non Po, Type of Services, Terms and Conditions.
For material/Goods Purchases, the Po is required. In the Po, QTY, Product Name, Where is delivery price, Terms and Conditions. In the po there is no matter of final amount. It is just the approximate amount.
11. What is accounts payable process and its impact to business?
Took Requisition from The concerned Departments regarding to the Material Required, And call for the Quotations, Based on the received Quotations Choose the Best of Service Provider, After Goods Received, We have to verify the Goods(Goods Condition, Rates Comparison in between Purchase order and Invoices) if there is any Discrepancy, we have to return the goods, raise credit note(by Store keeper) & store keeper will follow-up for the debit note (issued by the seller/Supplier/vendor/Service Provider),and process to Accounts Department. Then Accountant Book the invoice. It means book the expenses and creates liability to the organization (Credit the Vendor/Seller/Supplier/Service Provider). After booking of the Expenditure based on the P.O terms and conditions, the payment will release.
If we pay the amount through the cash, we need the working Capital. if the payment made through Cheque, We working capital will decrease(Liquidity of Cash).
Gpm means General Purchase Manager.
14. Do you know what is interest on capital?
Interest on capital is where the extra you receive on the total amount you invest in a business.
15. Do you know what is TDS? How to charged it?
TDS stand for Tax Deduction at source . It charged on source of income ex.interest, comm. lottery etc.
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.
Goods Received Ware House
1. Dr Inventory a/c
Cr GRNI a/c
2. Inv. Register in our system
Dr RI a/c
Cr Trade a/c
3. Receipts Matched/Approved
Dr GRNI a/c
Cr RI a/c
4. Inv. Paid
Dr Trade a/c
Cr Bank a/c
1.Entry
Purchase Account Dr $9000
To Cash/Bank A/c Cr $1500
To Payable A/c Cr $7500
2. Entry
Recurring Entry setup for 20 months every month from 4/1
Payable A/c Dr $375
To Cash/Bank A/c Cr $375
20. General questions asked by Accounts Payable:
► When is a Payment Request Form required?
► Why is a Payment Request Form required when I have already sent in the invoice?
► When is a Purchase Order Required?
► What is the difference between a Purchase Order and a Payment Request?
► What is the process for creating a Purchase Order?
► Why does the Supplier Registration Form need to be completed?
► What is the correct form for submitting multiple invoices for one supplier?
► What is the difference between an invoice and a pro forma invoice?
► What is the status of my payment and where can I go to see payment information?
► How do I receive an item in EAS?
► How do I receive an item in iBuy?
► What is the status of my payment and where can I go to see payment information?
21. Tell me who is department approver and releaser?
Department Approvers and Releasers are assigned by the Finance Directors. Please contact your Finance Director if you are unsure of your Approver or Releaser.
A pro forma invoice is a price quote and subject to change. Accounts Payable Services does not pay from pro forma invoices, statements, quotes or estimates.
An invoice is the official document from a supplier requesting payments for goods or services rendered.
24. For submitting multiple invoices for one supplier which is the correct form?
The Multiple Invoice Form (PDF) is used to submit more than one invoice to the same supplier. This form should be attached to the Payment Request Form (PDF).
25. Why registration form need to be completed by supplier?
Before a vendor can receive payment, they must register as a GW-approved supplier. This process includes completing a Supplier Registration Package (PDF), supplying the appropriate tax-identification number, and subscribing to the University's Supplier Code of Conduct.
26. Tell me the process for creating a Purchase Order?
Procurement & Travel Services provide instructions for creating a Purchase Order.
A Payment Request Form is used to submit an invoice for payment to Accounts Payable Services.
A Purchase Order is issued by Procurement & Travel Services after a requisition is submitted to them.
29. Do you know 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.
30. 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.
31. 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.
32. Do you know 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.
33. 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.
34. 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.
35. How do I know whether I should Purchasing with a question or call Accounts Payable?
► You can check the status of a purchase order or payment on an invoice by using PO Inquiry.
► Inquiring about the status of a purchase order, contact Purchasing.
► Having a difficult time with a vendor, contact Purchasing.
► Need to make a change to a purchase order, contact Purchasing.
