How would you handle a weekly vendor payment run?

What the interviewer wants to hear

• Select invoices due based on ageing and payment terms
• Check approvals and three-way match
• Deduct TDS where applicable
• Check vendor bank details and avoid duplicates
• Get authorisation, pay, then record and send advice

Model answer

I would start with the payables ageing report and pick invoices due in the coming week based on agreed credit terms, along with any priority suppliers. For each one I check that it is approved and matched to the purchase order and goods receipt, and that it has not already been paid, because duplicate payments are a common leak. I then calculate TDS where it applies and confirm that the supplier’s GSTIN and invoice details are correct for input tax credit. Before preparing the bank file, I verify vendor bank details against the master, and any recent change in bank details is confirmed by phone with a known contact, since that is a common fraud route. The payment list goes to an authorised signatory for approval. After payment I book entries in Tally or Zoho Books and send remittance advice to the suppliers.

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