Accounts Payable Interview Questions and Answers
Ques 1. What is the purpose of the accounts payable process?
The accounts payable process manages and tracks the company's outstanding invoices and ensures timely payment to vendors.
Example:
For example, when a company receives goods or services, an invoice is generated, and the accounts payable department is responsible for processing and paying that invoice.
Ques 2. Explain the difference between accounts payable and accounts receivable.
Accounts payable deals with money a company owes to its vendors, while accounts receivable deals with money owed to the company by its customers.
Example:
If a company buys raw materials from a supplier, it records an accounts payable. On the other hand, if a customer purchases goods, it records an accounts receivable.
Ques 3. What is the three-way match in accounts payable?
The three-way match involves comparing the purchase order, receiving report, and supplier invoice to ensure consistency and accuracy before processing payment.
Example:
For instance, if a company ordered 100 units of a product, received 100 units, and the supplier invoice matches these details, it passes the three-way match.
Ques 4. How do you handle discrepancies in invoices during the accounts payable process?
Discrepancies are investigated and resolved by coordinating with the purchasing department or the supplier. It may involve adjustments, corrections, or clarifications before processing payment.
Example:
If an invoice shows a different quantity than what was received, the accounts payable team works with the purchasing department to resolve the issue.
Ques 5. Explain the concept of early payment discounts and their impact on accounts payable.
Early payment discounts are incentives offered by suppliers for prompt payment. They can reduce the overall cost of goods or services if the company takes advantage of the discount.
Example:
If a supplier offers a 2% discount for payment within 10 days, the accounts payable team may recommend early payment to save on costs.
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