Accounts Payable Certification Practice Test

Which two statements indicate when it is not possible to void a payment?

1. A payment with the status of Issued

2. A payment that has cleared the bank

3. A payment for an invoice with Withholding Tax

4. A payment that has been posted to General Ledger

The correct answer is: A payment that has cleared the bank

The correct answer highlights a critical aspect of the payments process. A payment that has cleared the bank cannot be voided because it indicates that the transaction has already been completed and the funds have been transferred from the payer's account. Once a payment clears the bank, it typically becomes a legally binding transaction, making it impossible to reverse or void the payment in the accounts payable system. For the other scenarios: When a payment has the status of "Issued," it indicates that the payment has been created but not yet processed by the bank, so it may still be possible to void it. A payment that is associated with an invoice containing Withholding Tax typically does not affect the ability to void the payment as long as it has not cleared the bank or been posted. Finally, while a payment posted to the General Ledger is a critical step in financial tracking, it can sometimes still be voided depending on the accounting policies and the timing related to financial closing periods. Understanding these distinctions is key in accounts payable processes to ensure proper financial management and compliance.