SAP Accounts Payable Interview Questions and Answers

Here are some common interview questions and answers related to SAP Accounts Payable (AP) that you
might encounter:

#### 1. What is Accounts Payable in SAP?

**Answer:**

Accounts Payable (AP) in SAP is a submodule of SAP FICO (Finance and Controlling) that manages vendor
transactions and data. It involves functions such as invoice verification, vendor payments, and
maintaining vendor master data.

#### 2. What are the key components of Accounts Payable?

**Answer:**

The key components of Accounts Payable are:

- Vendor Master Data

- Invoice Posting

- Payment Processing

- Open Item Management

- Automatic Payment Program (APP)

- Reporting and Analysis

#### 3. Explain the process of creating a vendor master record.

**Answer:**

Creating a vendor master record involves:

1. Navigating to transaction code XK01 or FK01.

2. Entering the vendor account group, company code, and purchasing organization.

3. Filling in the required details such as name, address, bank details, and reconciliation account.

4. Saving the vendor master record.

#### 4. What is the purpose of the reconciliation account in SAP?

**Answer:**

The reconciliation account in SAP ensures that the general ledger remains in sync with the sub-ledgers. It
automatically posts entries from sub-ledger transactions (like AP) to the general ledger.

#### 5. How do you perform invoice verification in SAP?

**Answer:**

Invoice verification in SAP involves the following steps:

1. Entering the invoice using transaction code MIRO.

2. Matching the invoice with the purchase order and goods receipt.

3. Verifying the amounts and quantities.

4. Posting the invoice if there are no discrepancies.

#### 6. What is the difference between MIRO and FB60?

**Answer:**

- **MIRO** is used for posting vendor invoices related to goods and services received, which are linked
to purchase orders.

- **FB60** is used for posting vendor invoices that are not related to purchase orders, such as utility bills
or other miscellaneous expenses.

#### 7. Explain the Automatic Payment Program (APP) in SAP.

**Answer:**

The Automatic Payment Program (APP) automates the process of paying vendors. It involves:

1. Configuring the payment program (transaction code FBZP).

2. Running the payment program (transaction code F110).

3. Selecting invoices for payment.

4. Generating payment documents and updating the bank account.

#### 8. How do you handle a duplicate invoice in SAP?

**Answer:**

To handle a duplicate invoice in SAP:

1. Identify the duplicate invoice using reports or during the invoice verification process.

2. Block the duplicate invoice for payment using transaction code MRBR.

3. Investigate and verify the duplicate status.

4. If confirmed, reverse the invoice using transaction code MR8M.

#### 9. What is a credit memo in SAP AP?

**Answer:**

A credit memo is a document issued to a vendor to correct or reverse an overcharged invoice. It reduces
the amount owed to the vendor and is posted using transaction code MIRO or FB65.

#### 10. Explain the concept of "Open Item Management" in SAP.

**Answer:**

Open Item Management ensures that each transaction in a sub-ledger account is cleared against
appropriate entries. For example, an invoice entry will be matched and cleared with the corresponding
payment entry.

#### 11. What are some common reports used in SAP Accounts Payable?

**Answer:**

Common reports in SAP Accounts Payable include:

- Vendor Balance Report (FBL1N)

- Vendor Open Items Report (FBL1N with open items selection)

- Due Date Analysis (S_ALR_87012078)

- Payment History Report (S_ALR_87012085)

#### 12. How do you configure the payment terms in SAP?

**Answer:**

Payment terms are configured in SAP using transaction code OBB8. This involves defining:

1. Payment term codes.

2. Description of payment terms.

3. Baseline date calculation.

4. Discount percentages and due dates.

#### 13. What is a special GL transaction in SAP AP?

**Answer:**

Special GL transactions in SAP AP include transactions like down payments, bills of exchange, and
guarantees, which are not typical invoices or payments. They are posted to special GL accounts for
separate tracking.

#### 14. How do you perform a vendor reconciliation in SAP?

**Answer:**

Vendor reconciliation in SAP involves:

1. Extracting vendor balances and line items using reports like FBL1N.

2. Comparing these with vendor statements.

3. Identifying and resolving discrepancies.

4. Posting necessary adjustments or corrections.

#### 15. Explain the term "withholding tax" in SAP Accounts Payable.

**Answer:**

Withholding tax in SAP Accounts Payable refers to the tax withheld from vendor payments and remitted
to tax authorities. It is configured in the vendor master and automatically calculated during invoice
posting.

Feel free to ask if you need more detailed explanations or have additional questions!AP Accounts
Payable Interview Questions and Answers

Here are some common interview questions and answers related to SAP Accounts Payable (AP) that you
might encounter:

#### 1. What is Accounts Payable in SAP?

**Answer:**
Accounts Payable (AP) in SAP is a submodule of SAP FICO (Finance and Controlling) that manages vendor
transactions and data. It involves functions such as invoice verification, vendor payments, and
maintaining vendor master data.

#### 2. What are the key components of Accounts Payable?

**Answer:**

The key components of Accounts Payable are:

- Vendor Master Data

- Invoice Posting

- Payment Processing

- Open Item Management

- Automatic Payment Program (APP)

- Reporting and Analysis

#### 3. Explain the process of creating a vendor master record.

**Answer:**

Creating a vendor master record involves:

1. Navigating to transaction code XK01 or FK01.

2. Entering the vendor account group, company code, and purchasing organization.

3. Filling in the required details such as name, address, bank details, and reconciliation account.

4. Saving the vendor master record.

#### 4. What is the purpose of the reconciliation account in SAP?

**Answer:**

The reconciliation account in SAP ensures that the general ledger remains in sync with the sub-ledgers. It
automatically posts entries from sub-ledger transactions (like AP) to the general ledger.

#### 5. How do you perform invoice verification in SAP?

**Answer:**

Invoice verification in SAP involves the following steps:

1. Entering the invoice using transaction code MIRO.

2. Matching the invoice with the purchase order and goods receipt.

3. Verifying the amounts and quantities.

4. Posting the invoice if there are no discrepancies.

#### 6. What is the difference between MIRO and FB60?

**Answer:**

- **MIRO** is used for posting vendor invoices related to goods and services received, which are linked
to purchase orders.

- **FB60** is used for posting vendor invoices that are not related to purchase orders, such as utility bills
or other miscellaneous expenses.

#### 7. Explain the Automatic Payment Program (APP) in SAP.

**Answer:**

The Automatic Payment Program (APP) automates the process of paying vendors. It involves:

1. Configuring the payment program (transaction code FBZP).

2. Running the payment program (transaction code F110).

3. Selecting invoices for payment.

4. Generating payment documents and updating the bank account.

#### 8. How do you handle a duplicate invoice in SAP?

**Answer:**

To handle a duplicate invoice in SAP:

1. Identify the duplicate invoice using reports or during the invoice verification process.

2. Block the duplicate invoice for payment using transaction code MRBR.

3. Investigate and verify the duplicate status.

4. If confirmed, reverse the invoice using transaction code MR8M.

#### 9. What is a credit memo in SAP AP?

**Answer:**

A credit memo is a document issued to a vendor to correct or reverse an overcharged invoice. It reduces
the amount owed to the vendor and is posted using transaction code MIRO or FB65.

#### 10. Explain the concept of "Open Item Management" in SAP.

**Answer:**

Open Item Management ensures that each transaction in a sub-ledger account is cleared against
appropriate entries. For example, an invoice entry will be matched and cleared with the corresponding
payment entry.

#### 11. What are some common reports used in SAP Accounts Payable?

**Answer:**

Common reports in SAP Accounts Payable include:

- Vendor Balance Report (FBL1N)

- Vendor Open Items Report (FBL1N with open items selection)

- Due Date Analysis (S_ALR_87012078)

- Payment History Report (S_ALR_87012085)

#### 12. How do you configure the payment terms in SAP?

**Answer:**

Payment terms are configured in SAP using transaction code OBB8. This involves defining:

1. Payment term codes.

2. Description of payment terms.

3. Baseline date calculation.

4. Discount percentages and due dates.

#### 13. What is a special GL transaction in SAP AP?

**Answer:**
Special GL transactions in SAP AP include transactions like down payments, bills of exchange, and
guarantees, which are not typical invoices or payments. They are posted to special GL accounts for
separate tracking.

#### 14. How do you perform a vendor reconciliation in SAP?

**Answer:**

Vendor reconciliation in SAP involves:

1. Extracting vendor balances and line items using reports like FBL1N.

2. Comparing these with vendor statements.

3. Identifying and resolving discrepancies.

4. Posting necessary adjustments or corrections.

#### 15. Explain the term "withholding tax" in SAP Accounts Payable.

**Answer:**

Withholding tax in SAP Accounts Payable refers to the tax withheld from vendor payments and remitted
to tax authorities. It is configured in the vendor master and automatically calculated during invoice
posting.

Feel free to ask if you need more detailed explanations or have additional questions!