1. What is the cash application?
Cash application is the process of matching incoming
payments to outstanding invoices and to the proper account
where they can be entered
What is an ACH?
An ACH is an electronic fund transfer made between banks
and credit unions across what is called the Automated
Clearing House network.
What is wire
A wire transfer is an electronic way to transfer money. It is also known as bank transfer.
Accounts receivable (AR)
Accounts receivable (AR) are the balance of money due to a firm for goods
or services delivered or used but not yet paid for by customers. Accounts
receivable are listed on the balance sheet as a current asset. Any amount
of money owed by customers for purchases made on credit is AR.
1. What is GST?
Ans. GST or Goods and Service Tax is an indirect tax charged on the value of the service or product sold
to a customer. Here the consumers pay the tax to the seller, who thereby deposits the GST to the
government.
What is Order to cash
Order to cash, also known as O2C or OTC, is the business process that
covers the entirety of the order processing system. This includes
everything from receiving the order to logging the entry into your
accounting systems.
Order to Cash Process Steps
1. Receive Order
2. Manage Customer Payment
3. Fulfill Order
4. Ship Order to Customer
5. Create the Invoice
6. Collect Payment
7. Report and Analyze
ACCOUNT PAYABLE
When a company purchases goods on credit which needs to be
paid back in a short period of time, it is known as Accounts
Payable. It is treated as a liability and comes under the head
'current liabilities'
Or
Accounts payable refers to the money that has to be paid back by a
business for goods or services purchased on credit. It is the money
that they owe someone and there is a short period to pay it back.
Following are the steps included in the Accounts Payable
Cycle –
1. Determination of Goods Required
2. Procurement Process
3. Search for Suppliers
4. Request for Proposal
5. Review Receiving Quotation
6. Negotiation
7. Purchase Order
8. The Supplier’s Confirmation
9. Suppliers’ Duty
10. On Successful Delivery of Goods
11. Invoice Entry
12. Payment
What is PROCURE-TO-PAY
Procure-to-pay is the process of integrating purchasing and
accounts payable systems to create greater efficiencies.
What do you mean vendor?
A vendor, also known as a supplier, is an individual or company that sells goods or
services to someone else in the economic production chain.
What is AP Invoicing?
AP invoicing is the process in which a business receives and
processes invoices from their suppliers to pay for goods or services
received.
What is an Example of Accounts Payable Expenses?
Accounts payable differ from other types of current liabilities like
short-term loans, accruals, proposed dividends and bills of
exchange payable. Examples of accounts payable expenses may
include (but are not limited to) things like:
Transportation and Logistics
Raw Materials
Power / Energy / Fuel
Products and Equipment
Leasing
Licensing
Services (Assembly / Subcontracting)
Can You Explain the End to End Process
of Accounts Payable?
The end to end process of accounts payable involves the receiving and
approval of an invoice, followed by authorization of payment to be applied
to a vendor’s account
What Is a PO Invoice?
A PO invoice is one that has a purchase order attached to it. Essentially, these invoices are
generated after the approval of a purchase order. PO invoices contain details about the goods
or services procured, and a matching purchase order number.
When PO invoices are received by the AP department, they are matched against the
corresponding purchase order. This ensures that there are no inconsistencies between the
original purchase order and the PO invoice. PO invoices are usually pre approved.
Common examples of PO invoices include:
Vendor invoices
Invoices for goods received
Invoices for normal goods
What Is a Non-PO Invoice?
a non-PO invoice is one that doesn’t have a corresponding purchase order. Such invoices are
also known as expense invoices, and usually indicate any indirect purchases made by a
business. Owing to the nature of indirect procurement, non-PO invoices are generally not pre
approved.
Non-PO invoices are also used to make payments to suppliers when a particular invoice is
within the company’s spend limit. Common examples of non-PO invoices are:
Reimbursement for employee travel expenses
Reimbursement for employee parking or driving fees
Service invoices
What is a 3-way matching for accounts payable?
"3-way matching is a verification process used by accounts payable
professionals to ensure that they make correct payments to their
suppliers, businesses or customers. The three documents used in
this verification process are the purchase order, invoice and receipt.
Once the accounts payable verify that the purchase order, the
goods receipt note and the supplier's invoice match, they process
the payment and add it to the records."____
2. ell me the steps you will take before approving an invoice for payment?
Some of the following steps are:
Validate the statement once it is coordinated for checking any holds.
If the workflow is implemented, begin approval for the invoice. Once the invoice is approved, you can
go for payments.
Create accounting after the endorsement of the invoice.
Typical Accounts Payable Journal
Entries
2 – Damaged or undesirable inventory returned to
the supplier:
Entry when there is the purchase of assets other
than the merchandise inventory on account:
4 – Entry when the expenses incurred on account of
the services purchased on account:
Sundry Creditor
A person who gives goods or services to the business in credit or
does not receive the payment immediately from the business and is
liable to receive the payment from the business in future is called a
Sundry Creditor.
Sundry Debtor.
A person who receives goods or services from a business in credit
or does not make the payment immediately and is liable to pay the
business in the future is called a Sundry Debtor.
Deferred revenue expenditure
Deferred revenue expenditure refers to those expenses which will be incurred in the current
accounting period but the benefits of the expenses will be applicable over several accounting periods.