Top 30 Accounts Payable (AUS) Interview Questions You Must Prepare 06.Dec.2023

The Payment methods Electronic and Wire are modes of Electronic Fund Trfers . These modes might differ in the formats and documents involved at the site level. WIRE is a kind of outdated method used by remote sites for payments in ORACLE. Jargon might be different but the actual mode is same of either of them.

debit me "receivable" & credit me "payable".

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.

GRN me goods receipt notes ,it is generally used in manufacturing industries for checking of purchased of raw materials .
GRN contains the following details.

  • Ordered quantity .
  • Received Quantity.
  • Defective quantity in received quantity .
  • Quality standards details.

Invoice is a statement which contains the under mentioned details compulsorily:

  1. Invoice Number
  2. Invoice date
  3. Name and address of the person making the invoice ( Seller of goods and service)
  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.

@Have the goods been received in good order ?
@Is the quantity/price correct ?
@Were you expecting any discount ?
@Is the delivery charge correct ?

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 you need to format, build.

Credit what comes in.
Debit what goes out.

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.t

Liabilities are what all you owe from the bank on notes payable or in other words it is:

Liability=Asset-Owners equity.

You can use document parking to enter and store (park) incomplete documents in the SAP System without carrying out extensive entry checks.

Account is 'the art of classifying, analysing, Recording and summarising financial information', to the management.

Accounts payable is nothing but money which a company need to pay to vendors for goods and services purchased on credit.

  1. Accounts payable is a current liability of a company.
  2. This item appears on liability side of a balance sheet.

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.

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.

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.

SAP Memory: Global, user-related memory that extends beyond traction 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).

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.

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

  • Step1: Receipt of Invoice and goods
  • Step2: QC approval
  • Step3: Verification with po terms
  • Step4: creation of liability
  • Step5: payment after due date.

There are two types of assets they are fixed assets & current assets.

  • PO expenses are paid for the core business activities. e.g a food manufacturing co. will pay its usual charges for Raw material freight, plant maintenance etc.
  • A non PO expenditure is the one which is payment for its non core activities e.g payment of utility bills e.g telephone charges, electricity bill.
  • for usual tractions of core business traction a PO is created i.e. Purchase order# is created & non PO is for non core activities.

Winter Compensation from Contributions.

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 trfer between retailers, distributors, and independent service operators with special regard to the requirements in deregulated markets.

Institute of Finance & Accounts.

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.

Account payable is the outstanding balance that we must pay to the third party or suppliers.
We pass the entries in account payable from two sides: purchase order and general ledger.

  • Purchase order module will be posted after material order has been arrived in warehouse and combining with invoice plus related documents that have been approved by authorized person.
  • General ledger normally from service entry where it must be attached by service agreement between company and third party.

  1. We should verify that any advances have been made.
  2. See that all the services/goods delivered according to bill.
  3. Any query is there to attend on that ultimately can be made payment.

In Banks point of view debit me you have deposited money in the bank . and credit me you have withdraw money from the banks.

Supplier should follow the check list.

  1. He should create confidence in the client mind
  2. Services to be done (fulfilled in time)
  3. Services to be done according the specification of the client.
  4. He should be placed the another order by doing the above three steps.