Accounts Payable Questions

Q:

What is the meaning of TDS? How it is charged?

Answer

TDS Meaning :


TDS means TAX DEDUCTABULE AT SOURCE. It is charged on Base Amount. 


TDS is tax charged by the customer who gets the services from Vendor or supplier. Here Customer is responsible to charge it and pay to the government.


Different types of TDS : 


1) TDS on salary has to be deducted on salary paid to employee by employer if it crosses the tax limit. And pay to the government on or before due date.


2) In case of TDS on contractors or profession or others, there is slab that min tax, surcharge,  education cess plus higher education cess, it is different and finance minister may change or keep same or remove in every year budget. Secondly you can deduct the TDS on bill amount while paying or if advance is paid.

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Q:

Explain End to End AP Process?

Answer

Accounts payable has got noting to do with purchase of goods and services, it's work is to pay the eligable invoices.

End to End Process of AP
- Process the vendor invoices into system
- Work and resolve the discripencies of the invoices (if any)
- Make the payments to the invoices as per the agreement
- Resolve the issues ( if any  ) regarding the invoice payments

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Q:

What is a Non-PO Invoice?

Answer

A non-po is an invoice which does not have po(purchase order).However, these invoices requires approval for authorized person/persons to process for payment.


What_is_a_Non-PO_Invoice1558075538.jpg image

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Q:

What is the difference between debenture and preference share ?

Answer

The difference between Debentures and Preferential Shares is as follows:

1) Person holding debentures has owed money to a company, while Preferential Shareholder could be considered as a partial owner of the company.

2) A Preference shareholder earns dividends if the company is making profits, however a debenture holder needs to be paid irrespective of making profits or losses.

3) A debenture holder would be paid the capital invested at the end of a stipulated term. A preference shareholder is not promised return of capital invested; instead he earns dividends till the time the company exists and is profitable.

4) A debenture holder earns interest on the capital invested till the capital is not returned, while a preference shareholder is paid dividends till the time the company exists.

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Q:

Which are the main MIS Reports of an accounts department & what the format of preparing the MIS ?

Answer

MIS report is known as Management Information System... regarding the Manpower status of a particular month, place and overall..


It helps the Management in decision making.. like what are the reasons of resignation.. in which area attrition is high.. and so many things to help in decision making.. with the help of MIS you may prepare a lot of reports.. Like annual attrition.. region wise attrition.. region wise manpower.. graphical representation of regions manpower status.. and so on..


You may prepare the same at your end.As it will help you to prepare other such formats too.


I am describing you the contents with sheet wise..


First Sheet - Details of employee


a. E.Code


b. Name of employee


c. Date of birth          


d. Designation


e. CTC


f. Address for communication


g.Permanent address


h. Contact number


i. Blood group


j. Maximum qualification


k. Extra qualification


l.Total Experience


Second Sheet- Salary structure


In this sheet write down the complete salary structure.. and make a column what is salary after any revision


Third Sheet - New Joinees


In this sheet write down the name of New joinees of that month with detail like CTC,  Designation, DOB etc. 


Forth Sheet - Resigned employees


In this sheet write the name of employees who resigned during that particular month with details like name, designation, date of joining, Date of resignation, last working day.


Fifth sheet - Attrition rate


Based on this MIS report, you may find out the attrition report, Qualification analysis reports, team management reports and so on can prepare a number of reports..

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Q:

What is the full form of the trem WIRE in wire payment ? Explain the process for making and receiving the payment through WIRE?

Answer

There is no specific abbreviation for the term WIRE because when the payment is being made using this option, you will not see the physical movement of funds. It is all electronic. It is just like a current passes through Wire. 


Therefore Electronic movement of funds is campared with WIRE.

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Q:

What is the Debit Balance recovery? How we can recover if we wont have any future transactions from supplier?

Answer

The Debit balance recovery is usually made by raising a credit memo for the regular vendors. However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him.


When payment is made to the wrong vendor or payment made in excess, in that case overpayment has gone to the vendor, So for us it is vendor debit balance.


For debit balance recovery, we can either follow-up with the vendor to send us the excess amount / refund back, or we can adjust that extra amount in future invoices submitted by that vendor


In Case no future transactions, we have to follow-up with the vendor, falling whicch we have to write off this amount.

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Q:

What is STPI ? why STPI knowledge required in Accounts Payable?

Answer

Software Technology Parks of India (STPI).Some of the software service providers will get exemption from STPI for their software exports. In accounts payable may be we need to define the vendor STPI location wise.


In India we have different STPI location. If one vendor supplying services or materials to all OR some of the STPI locations we need to maintain the same vendor STPI wise.  

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