Basic Accounts Payable Questions

1. What is Accounts Payable?

Accounts Payable is the amount a company owes to vendors or suppliers for goods and services received but not yet paid.

2. What documents are used in the Invoice process?

- Purchase Order (PO)
- Invoice
- Goods Receipt Note (GRN) / Service Entry Sheet
- Payment Request / Payment Note

3. What is the three-way match in Invoice? Three-way matching ensures:

- PO
- Invoice
- GRN

All three must match in quantity, price, and terms before payment is released. 4. What is invoice processing?

Invoice processing involves receiving, validating, booking, approving, and paying vendor invoices as per company policy.

5. What is a duplicate invoice and how do you prevent it?

A duplicate invoice is when the same invoice is submitted more than once.

Prevention methods

- Invoice number validation
- Vendor + invoice number check
- System duplicate controls

6. What is TDS and how is it handled in while processing invoice? TDS (Tax Deducted at Source) is deducted while making vendor payments as per Income Tax Act and deposited with the government.

7.



What is GST impact in invoice process?

AP must ensure

- Correct GST rate
- Vendor GSTIN validation
- Input Tax Credit (ITC) eligibility
- Timely booking for GST returns

8. How do you handle urgent or critical payments?

- Obtain proper approvals
- Verify invoice authenticity
- Follow exception approval process
- Document reasons for urgency

9. What is accrual in Accounts Payable? Accrual is booking expenses for goods or services received but invoice not yet received, ensuring correct period accounting.

10. What is GR/IR clearing?

GR/IR account tracks goods received but invoice not booked or vice versa. Regular clearing ensures clean balances.

11. How do you manage vendor escalations?

- Prioritize aging invoices
- Communicate clearly
- Share payment timelines
- Coordinate with internal stakeholders

12. What are common AP audit issues?

- Delayed payments
- Inadequate approvals
- Duplicate payments
- GST/TDS non-compliance

📌 Invoice Executive (Mumbai)
🏢 TeamLease
📍 Mumbai