 Interview preparation.

 Self-introduction.

 Hello sir, I am Raghu; I am from Tamil Nadu; I have completed my graduation at Bangalore
University; and I have 5 years of experience in the accounts payable process. I worked for 2
years at Capgemini as a process associate for the invoice processing team, and then I
moved to Eurofins, where I supported the vendor inquiry and reconciliation processes.

 Why should we hire you?

I believe I have the combination of skills and experience necessary to excel in this role. I
have a proven track record of successfully executing projects on time, as well as the
ability to manage multiple tasks simultaneously. This makes me the perfect candidate
for this job.

What is your salary expectation.

Over the years I have really upskilled myself. I believe based on the market standards for the
particular role and my experience and skill set a salary range would be fair and appropriate

why you left your previous job

I want to pursue better career opportunities and reach my full potential. I like to learn new skills
and gain fresh experiences, and I need a better work-life balance than my current job offers.

 Procure to pay cycle(P2P)

 In a company, the demand for the goods is raised, and at that time, the company will raise a
purchase request with the procurement team. The procurement team will search for goods
with the existing vendor; if the existing vendor has goods, the procurement team will place
an order. If they don't find goods with the existing vendor, the procurement team will search
for new vendors and raise the quantity if they accept the price and delivery time. The
procurement team will create a purchase order.

 After Placing an order, the supplier will deliver the goods to our warehouse, where we will
create a Goods receipt note. After the creation of the goods receipt note, it will go to the
invoicing team..
 The invoicing team will process invoices matching PO and GRN. And after processing the
invoice, it will go to the payment team, which will verify the necessary details of the vendor
and make the payment as per the due date.

Stock received.

Inventory account DR

To GR\IR acc

Invoice Received

GR\IR account DR

To vendor acc

Payment made to vendor.

Vendor account DR

Bank account

Why do we perform vendor reconciliation?

We do vendor statement reconciliation to maintain accurate financial records. We can identify

discrepancies or errors in our records and correct them before they become major problems,
which helps the company manage cash flow.

What is a vendor reconciliation?

Vendor reconciliation involves identifying discrepancies between vendor invoices and our actual
expenses. The procedure involves matching vendor invoice details with our system records to
find unpaid payments.

What do you mean by intercompany reconciliation?

intercompany reconciliation is the verification of transactions that take place between two units
or subsidiaries of the same parent company. Many businesses have divisions, subsidiaries
other units that act independently but are owned by a larger parent company.

What is the purpose of inter company reconciliation?

To ensure that financial statements and data is accurate, intercompany reconciliation takes
place to confirm the transaction amount is recorded right for both parties and, in closing, to
eliminate them from statements.

Example-

An example of this is Facebook is the parent company and Instagram and Whatsapp are the
subsidiaries. If there was a transaction made between Instagram and Whatsapp, there is a need
for reconciliation of data so it neither shows as revenue or cost for the company.

The 4 types of purchase orders you'll use in business

 Standard purchase order (PO)

 Planned purchase order (PPO)
 Blanket purchase order (BPO)
 Contract purchase orders (CPO)

Standard purchase order

A standard purchase order is created when the details of the required goods or services are
known. This has a complete set of specifications, such as price and quantity, with clearly
defined payment and delivery timelines as well as location. We can only use this program once.

Example – Unreal corp. decides to buy 50,000 x 9W led bulbs from GE for a unit price of 10 each
to be delivered within 60 days of the order date. In such case, Unreal corp. will raise a standard
PO and send it to GE for acceptance.

Planned purchase order

A planned purchase order is a long-term agreement committing to buy items or services from a
single source. The planned purchase order legally binds the buyer to commit to price and
quantity, but delivery dates will likely be subject to change as time goes on.
Example – Unreal Corp. has evaluated that it will have a long-term need for the next 5 years to
buy 25,000 x 11W led bulbs each year. Instead of raising a standard PO each time Unreal Corp.
can create a planned purchase order.

Blanket purchase order

It is a long-term contract with a specific supplier that is set at a fixed price for a period of time.
The prices of goods are fixed, and quantities of each product are given to the supplier to
prepare stock for the requested delivery.

Example – Unreal corp. decides to buy 5,00,000 x 9W led bulbs each year but they are not sure
about the delivery schedule & quantity of each release. In such a situation Unreal corp. will raise
a blanket purchase order.

Contract purchase orders

It is created for a set period of time (often a year), so the item, pricing, quantity, etc. can’t be
anticipated precisely. During the contract period, the buyer can raise a standard PO with
specifications of requirements and a request for goods.

Example – Unreal Corp. analyzes and concludes that it often requires led bulbs of different
wattage around different times of the year, however, the requirement is irregular and can’t be
anticipated. In this case Unreal corp. can raise a contract purchase order.

Accrued expenses.

Expenses that a business incurs but has not yet paid.

For example, a company might receive goods or services and pay for them at a later time. It's a
similar concept to buying something with a credit card.

Interest expenses DR

To Interest payable account

Interest payable account DR

To Bank account.

 Accrued interest: This is interest that has been earned but not yet received or recorded. ...
 Accrued salaries: These are salaries that have been earned by employees but not yet
paid or recorded. ...

What is called accrual?

An accrual is an accounting term used to describe the process of recording income or expenses
when they occur, rather than when payment is made or received. This means that a company
can record income or expenses before they are actually received or paid.

What is Debit

A debit entry increases an asset or expense account. A debit also decreases a liability or equity
account. Thus, a debit indicates money coming into an account. In terms of
recordkeeping, debits are always recorded on the left side, as a positive number to reflect
incoming money

what is credit

A credit entry increases liability, revenue or equity accounts — or it decreases an asset or

expense account. Thus, a credit indicates money leaving an account. You can record all credits
on the right side, as a negative number to reflect outgoing money.

What does subsequent debit

Subsequent debit is the process to increase the price for an existing invoice with reference to an
advanced shipping notification. Important: Only use this process for exceptional situations,
normally the PO price cannot be adjusted.

What does subsequent credit

Subsequent credit is the process to reduce the price for an existing invoice with reference to an
advanced shipping notification. Subsequent debit is the process to increase the price for an
existing invoice with reference to an advanced shipping notification.
What Are Prepaid Expenses?

Prepaid expenses are future expenses that are paid in advance, such as rent or insurance. On
the balance sheet, prepaid expenses are first recorded as an asset

Rent expensed acc DR

To Prepaid rent Acc

Insurance expensed acc DR

To Prepaid insurance.