Purchase Ledger

Question 1

Example of when you have dealt with a difficult supplier?

Answer 1

In a situation with a difficult supplier:
Establish rapport and trust - Make sure communication is frequent, via email or telephone
Active listening - Focus on achieving a common goal, not get angry with them.

Question 2

Experience with raising PO numbers?

Answer 2

The purchase request is entered into the digital system

A more senior member of staff who signs off on the order is notified

A digital purchase order is created and submitted online

Question 3

What is a purchase ledger role?

Answer 3

Processing new supply purchases

Reviewing invoices to ensure that they’re accurate and correctly formatted

Calculating the VAT owed on purchased items

Question 4

First step in accounts payable?

Answer 4

Create a purchase order

A purchase order is a document a buyer sends to a supplier requesting goods or services

Question 5

Second step in accounts payable?

Answer 5

Review the invoice the supplier sent

The supplier invoice will include details on the quantity of goods or services, the price, payment terms, and net 30

Question 6

Third step in accounts payable?

Answer 6

Entering invoices into your accounting system

Question 7

Fourth step in accounts payable?

Answer 7

Approve the invoice

Question 8

Fifth step in accounts payable?

Answer 8

Pay the supplier invoices

Can be writing a check to making an electronic payment or bank transfer

Question 9

Payment transaction journal entry

Answer 9

Debit:
Accounts payable

Credit:
Bank

Question 10

Bills to pay journal entry

Answer 10

Debit:
Overhead (e.g. advertising)
VAT

Credit:
Accounts payable