In accounts payable (AP), which option best describes the complete end to end AP process from purchase requisition to payment and reconciliation?

Introduction / Context:
The end to end Accounts Payable process describes how an organisation controls its purchases and vendor payments. It is a favourite interview topic because it tests both conceptual understanding of internal controls and familiarity with practical workflow steps such as purchase orders, goods receipts and invoice processing.

Given Data / Assumptions:
- We are talking about a standard corporate AP cycle for goods or services purchased from vendors.
- The process normally involves documents such as purchase requisition, purchase order, goods receipt note and vendor invoice.
- There is an approval workflow and finally a payment run followed by accounting reconciliation.

Concept / Approach:
A robust AP process ensures that the company pays only for goods or services that were actually ordered, received and approved, and that all payments are recorded correctly in the books. The classic description is a sequence beginning with internal demand, then formal ordering, receiving, matching, approval, payment and reconciliation. The most important control is the three way match between purchase order, goods receipt and invoice before release of payment.

Step-by-Step Solution:
Step 1: A department raises a purchase requisition to request goods or services and obtain internal approval.
Step 2: Procurement creates a purchase order and sends it to the vendor, confirming quantity, price and terms.
Step 3: The vendor delivers goods or services, and the company records a goods receipt or service entry.
Step 4: The vendor submits an invoice. AP performs a three way match between the purchase order, goods receipt and invoice.
Step 5: After resolving any mismatches and obtaining required approvals, AP schedules the invoice in the payment run.
Step 6: Payment is made by cheque, electronic transfer or other mode and the vendor account is updated.
Step 7: Finally, bank accounts and vendor balances are reconciled to ensure accurate financial reporting.

Verification / Alternative check:
If a description mentions purchase requisition, purchase order, goods receipt, invoice verification, approval, payment run and reconciliation in a logical chain, it is describing the end to end AP process. Any description that speaks only about sales or only about bank reconciliation without vendor invoices is not correct for this question.

Why Other Options Are Wrong:
Option B relates to Accounts Receivable, where the company sells and collects from customers, not to AP. Option C describes only bank reconciliation, which is one control activity and not the entire AP cycle. Option D suggests making cash payments without purchase orders or approvals, which goes against standard AP controls and therefore cannot be the correct description of the proper process.

Common Pitfalls:
Candidates sometimes confuse AP with AR and talk about customer collections instead of vendor payments. Another common mistake is to skip the three way match and jump directly from invoice to payment, ignoring control steps. It is also easy to forget the final reconciliation stage, but interviews often probe whether you understand that the cycle includes both operational processing and financial control at period end.

Final Answer:
Correct option: Raising a purchase requisition, creating a purchase order, receiving goods or services, matching invoice with PO and receipt, approving, paying the vendor and reconciling accounts.