10+ Mahindra & Mahindra Interview Questions and Answers

P2P cycle is the Procure-to-Pay cycle, which is the process of purchasing goods or services and making payments for them.

• P2P cycle involves several steps such as requisitioning, sourcing, purchasing, receiving, and payment.

• It starts with the creation of a purchase requisition, which is a request for goods or services.

• The requisition is then approved and converted into a purchase order, which is a formal agreement to buy the requested items.

• The purchase order is sent to the su...read more

Accounts Receivable is a subledger that records all incoming payments from customers.

• AR is used to manage customer invoices and payments

• It tracks outstanding customer balances and generates aging reports

• AR can be integrated with sales and distribution modules for seamless processing

• It allows for credit management and dunning processes to ensure timely payments

• AR can also be used for cash application and bank reconciliation

Down payment is a partial payment made before goods/services are delivered, while down payment request is a formal request for a down payment.

• Down payment is made by the customer to secure an order, while down payment request is initiated by the vendor to request a down payment from the customer.

• Down payment is a financial transaction, while down payment request is a formal document.

• Down payment is usually a percentage of the total amount, while down payment request specifies...read more

In the general ledger control data tab, we can see fields like chart of accounts, account group, reconciliation account, etc.

• Chart of accounts field displays the chart of accounts assigned to the company code

• Account group field specifies the account group for the G/L account

• Reconciliation account field shows the reconciliation account for vendors or customers

AP2P cycle stands for Accounts Payable to Payment cycle in SAP FICO. It involves the entire process from invoice receipt to payment disbursement.

• AP2P cycle starts with the receipt of vendor invoices.

• Invoices are verified, approved, and posted in the system.

• Payment terms are determined and payments are processed.

• Finally, payments are disbursed to vendors.

• The cycle ensures accurate and timely payment to vendors.

Account Payable is a sub-ledger account in SAP-FICO used to track and manage payments to vendors.

• AP is used to record and manage all vendor invoices and payments

• It helps in maintaining accurate records of outstanding payments and due dates

• AP can be integrated with other modules like MM and SD for seamless transactions

• It allows for automatic payment processing and vendor statement reconciliation

• Reports can be generated to analyze vendor performance and payment history

Account receivable in SAP FICO involves managing customer invoices and payments.

• Involves creating customer invoices for goods or services provided

• Tracks payments received from customers

• Allows for reconciliation of accounts receivable with general ledger

• Provides reports on outstanding receivables and aging analysis

Down payment is a partial payment made by a customer before receiving goods or services.

• Customer requests down payment to be made

• Vendor creates down payment request in SAP

• Customer makes partial payment

• Vendor delivers goods or services

• Down payment is cleared against final invoice

Control data GL tax field is used to manage tax-related information in the General Ledger.

• Control data GL tax field is used to specify tax codes for different tax types.

• It helps in determining the tax amounts to be posted to the General Ledger accounts.

• The tax field can also be used to track tax exemptions or special tax treatments.

• It is important to ensure that the tax field is correctly configured to comply with tax regulations.

• Examples of tax fields include VAT, sales tax,...read more

Automatic Payment Program is a feature in SAP FICO that allows for automated payment processing.

• Automates the process of making payments to vendors or customers

• Can be scheduled to run at specific intervals

• Allows for customization of payment methods and parameters

• Reduces manual effort and errors in payment processing

Ranking order refers to the sequence in which items or individuals are arranged based on a specific criteria or attribute.

• Ranking order is used to determine the relative position or importance of items in a list.

• It can be based on factors such as performance, value, or priority.

• For example, in a sales report, products can be ranked in order of highest to lowest sales revenue.

O2C process refers to Order to Cash process which involves receiving and fulfilling customer orders.

• Customer places an order

• Order is processed and goods/services are delivered

• Invoice is generated and sent to customer

• Payment is received from customer

• Accounts receivable is updated

P2P process stands for Procure to Pay process, which involves all steps from requisition to payment for goods or services.

• Requisition: Request for goods or services

• Purchase Order: Formal order placed with supplier

• Goods Receipt: Receiving and inspecting goods

• Invoice Verification: Matching invoice with purchase order and goods receipt

• Payment: Settling the invoice

GR/IR in trail balance refers to Goods Receipt/Invoice Receipt clearing account in the trial balance.

• GR/IR is used to track the difference between goods receipt and invoice receipt in the accounting system.

• It helps in reconciling the accounts payable and accounts receivable.

• Any discrepancies in the GR/IR account need to be resolved to ensure accurate financial reporting.

• Example: If a company receives goods but has not yet received the invoice, the amount will be recorded in t...read more