Accounts Receivable (AR) Interview Preparation Guide
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Accounts Receivable Interview Questions and Answers will guide us now that Accounts Receivable is typically executed by generating an invoice and either mailing or electronically delivering it to the customer, who, in turn, must pay it within an established timeframe, called credit terms or payment terms. Accounts Receivable departments use the sales ledger. So learn the Accounts Receivable concepts with this Accounts Receivable Interview Questions Answers guide and get job preparation

33 Accounts Receivable Questions and Answers:

1 :: Explain What are the issues related with Accounts receivable?

As the Accounts Receivable Supervisor, you will:

► Oversee and resolve all issues related to cash application to ensure accuracy
► Reconcile daily cash receipts to payment register
► Design and implement new Accounts Receivable processes and procedures
► Process short payment and accounts receivable adjustment forms
► Develop and maintain reports to assess team productivity
► Invoice special customer accounts
► Supervise five Accounts Receivable Associates
► Other duties as may be assigned.

2 :: Explain What is Customer Master record?

A Customer Master Record is a permanent record that contains key information about a business partner or a material. This information must be entered into the system before any transactions can take place involving the business partner [customer] or a material. Entering all the information about a customer or a material into the system b efore making transactions insures that subsequent transactions or inquiries will have consistent data and reports and analyses can be done in an orderly way. Master Records can be edited or changed when necessary. Changing master records is frequently called "Maintaining" in SAP

3 :: Explain What is the difference between debenture holders and creditors?

Debenture holder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.

4 :: What are the components or materials used by Accounts receivable departments?

Accounts Receivable department is very important department of the company. The responsbilities of the department is approval of credit limit to the customer study the past history of customer credit sending invoices to the customer updation of the customer credit data factoring contacts with the factoring agents follow up of customers motivating the customers to pay the dues intime and communicating the information to the management. Credit sales data estimation of credit sales for the future period request for funds to finance department whenever they required follow up of customers receivables management.

5 :: How to define Inter company Transaction in Account Receivable?

Before answering the above question let us first understand the meaning of Intercompany transactions. Intercompany transactions are those transactions that takes place between two or more entities of the same group of company. So the receivable of one entity would the payable of another entity. All intercompany transactions are eliminated befor preparing the final Balance sheet of the group company.

6 :: What is an Accounts receivables?

Money owed by a business enterprise for merchandise bought on open account. It is also called "A/R" or just "Receivables". Accounts Receivable are the amounts owed to a company by its customers and/or employees.

7 :: Explain How is a journal entry recorded?

Journal Entries are recorded on a double entry system ie debit and credit concept. In order to record a journal entry the following steps need to be followed.
► Enter the Journal entry number
► Enter the Date of transaction
► Enter the Debit item (as per the golden principles of accountancy)
► Enter the corresponding GL folio number
► Enter the Debit amount
► Enter the credit item(as per the golden principles of accountancy)
► Enter the amount in the credit column
► Provide a brief description of the transaction
► leave a single line before next transaction

8 :: How we are going to close AR Periods?
Where we are going to use Accounting Rules what are the setups for that?
Know we are having 100 Transactions in AR. Know we want to close 50 Transactions How?

Review balances and reconcile the AR transactions i.e
► *Reconcile receipts
► *Reconcile journals
► *Reconcile transactions
► *Reconcile customer balances

► Reconcile transactions and receipts
► Reconcile outstanding customer balances i.e.
► Opening balance + Transactions - Receipts Closing balance
► Reconcile transaction and receipt accounting flexfield balances

► Transfer to GL
► Review transfers results and resolve transfer issues if any
► Post the journal in GL
► Close the GL period

9 :: Explain What is factoring?

Selling the rights to the amounts owing by debtors to a finance company for an agreed amount (which is less than the figure at which they are recorded in the accounting books because the finance company needs to be paid for providing the service).

10 :: To what extent were you involved in collections?

Collection involves calling the customers for past due and this kind of question has to logically answered