Accounts Payable - Consistent Frozen Solutions has sent a JOB OFFER!!!! THANK YOU, LORD!!

Whenever you answer a technical accounting question, try to follow this structure: (5) IEDEE

1. Identify the issue.

2. Explain what documents or records you'll review.

3. Describe who you'll coordinate with, if needed.

4. Explain the action you'll take.

5. End with how you'll ensure the records remain accurate or how you'll prevent similar issues in the future.

What is Accounts Payable

Accounts Payable (AP) is money that a company owes to suppliers or vendors for goods or services purchased on credit.

Complete Accounts Payable Process (11)

1. Purchase Requisition

2. Purchase Order (PO)

3. Vendor delivers goods

4. Receiving Report (RR)

5. Vendor sends Invoice

6. Three-Way Matching

7. Invoice Approval

8. Journal Entry

9. Payment Preparation

10. Check/Bank Transfer

11. Payment Recorded

Source Documents (10)

Document	Purpose
Purchase Requisition	Internal request to buy
Purchase Order	Sent to supplier
Sales Invoice	Bill from supplier
Official Receipt	Proof of payment
Receiving Report	Confirms goods received
Delivery Receipt	Shows goods delivered
Check Voucher	Internal payment approval
Debit Memo	Increase amount owed
Credit Memo	Reduce amount owed

Three-Way Matching

One of the most important AP concepts.

Before paying an invoice, AP compares:

✅ Purchase Order

✅ Receiving Report

✅ Vendor Invoice

If everything matches:

Approve payment.

If not:

Investigate first.

Invoice Verification (10) VIIDPQPVTA

Know what AP checks before paying.

Check:

• Vendor name

• Invoice number

• Invoice date

• Due date

• Purchase Order number

• Quantity

• Price

• VAT

• Total amount

• Approval signatures

"What would you do if the invoice amount doesn't match the purchase order?"

Answer:

I would not process the payment immediately. I would compare the invoice with the purchase order and receiving report, identify the discrepancy, coordinate with the purchasing department and vendor, and process the payment only after the issue has been resolved and properly approved.

Credit Terms

Know common payment terms.

Examples

Net 30

Payment due within 30 days.

Net 60

Payment due within 60 days.

2/10 Net 30

2% discount if paid within 10 days.

Otherwise,

Full payment in 30 days.

Interviewers sometimes ask this.

Due Date vs Invoice Date

consequences of late payment (3) PID

Invoice Date

Date supplier issued invoice.

Due Date

Deadline for payment.

Late payment can result in:

• penalties

• interest

• damaged supplier relationship

Accounts Payable Aging Report

purpose? (3) MPM

Shows unpaid invoices based on age.

Purpose

• Monitor overdue accounts

• Prioritize payments

• Manage cash flow

Vendor Statement Reconciliation

reasons (5) MDWPC

Job description specifically mentions this.

Vendor sends statement.

You compare:

Company records vs Vendor records

If differences exist:

Investigate.

Reasons include

• Missing invoice

• Duplicate payment

• Wrong amount

• Payment not yet posted

• Credit memo missing

Accruals

Appears in month-end closing.

Example

Electricity already used in June.

Invoice arrives in July.

Expense belongs to June.

Journal Entry

Debit Utilities Expense

Credit Accrued Expenses

Later

Debit Accrued Expenses

Credit Cash/AP

Know the concept rather than memorizing every entry.

Month-End Closing (6) RRRRPE

Know what AP does.

Usually:

• Record all invoices

• Record accruals

• Reconcile AP

• Review unpaid invoices

• Prepare AP Aging

• Ensure balances are accurate

AP Reconciliation

Compare:

General Ledger

vs

Accounts Payable subsidiary ledger

They should match.

Accounts Payable vs Accounts Receivable (4)

Very common.

AP	AR
Money company owes	Money customers owe company
Liability	Asset
Suppliers	Customers
Outgoing cash	Incoming cash

Common AP Journal Entries (4)

Purchase on credit

Dr Expense/Inventory

Cr Accounts Payable

Payment

Dr Accounts Payable

Cr Cash

Purchase Return

Dr Accounts Payable

Cr Inventory/Purchases

Discount Received

Dr Accounts Payable

Cr Cash

Cr Purchase Discount

Debit and Credit Rules

Especially:

Assets ↑

Debit

Liabilities ↑

Credit

Expenses ↑

Debit

Revenue ↑

Credit

AP is a Liability.

Increase?

Credit.

Decrease?

Debit

Check Voucher (5) VIACA

Contains what and also the purpose?

Many companies use this.

Contains:

• Vendor

• Invoice

• Amount

• Check number

• Approval signatures

Purpose

Internal approval before payment.

Duplicate Payments (5)

How to avoid?

Hiring managers love this.

How to avoid?

• Check invoice number

• Check vendor

• Review payment history

• Verify approval

• Maintain organized records

Internal Controls (5)

Know basic controls.

Examples

• Approval hierarchy

• Three-way matching

• Segregation of duties

• Supporting documents

• Audit trail

Excel Skills (12)

✅ SUM

✅ SUMIF

✅ SUMIFS

✅ XLOOKUP

✅ VLOOKUP

✅ IF

✅ COUNTIF

✅ Pivot Table

✅ Filters

✅ Sort

✅ Remove Duplicates

✅ Conditional Formatting

ERP / Accounting Software

You don't need experience.

Know what ERP means.

Examples

• SAP

• NetSuite

• Oracle

• Microsoft Dynamics

• Odoo

Interview answer:

Although I don't have hands-on experience with ERP systems yet, I understand that they are used to record transactions, process invoices, manage vendor accounts, and generate reports. During college, I became proficient in Microsoft Excel, and I am confident I can quickly learn new accounting software through training.

VAT Basics

Know:

Input VAT

VAT paid when purchasing.

Output VAT

VAT collected when selling.

In AP:

Mostly dealing with Input VAT.

Soft Skills They Want to Hear

Relate your answers to the qualifications in the job description by emphasizing that you are:

• Detail-oriented and accurate in reviewing invoices and entering data.

• Organized and able to manage multiple deadlines.

• Honest and committed to following company policies and internal controls.

• Comfortable communicating professionally with vendors and internal departments.

• Eager to learn new systems, including ERP software

The higher invoice could also be because: (7)

• the supplier charged the wrong price,

• there was a duplicate item,

• freight charges were added,

• taxes were calculated incorrectly,

• the supplier made a clerical error,

• someone changed the PO without updating everyone,

• or yes, more goods were delivered.

Because if AP pays an incorrect invoice:

Because if AP pays an incorrect invoice:

• the company loses money,

• audit findings may occur,

• vendors may be overpaid,

• correcting the mistake becomes much harder.

CORE PURPOSE: Consistent Frozen Solutions (3)

To FEED, EMPOWER and GROW people.

We believe that food opens up opportunities for our customers and our employees to grow and have a brighter future.

CORE VALUES: Consistent Frozen Solutions (5)

Malasakit sa customer, empleyado at kumpanya

Continuous Improvement

Winning as a Team

Direct and Open Communication

Data Driven