Nexdigm Senior Associate Interview Questions and Answers

Invoice matching process involves comparing purchase orders, invoices, and receiving reports to ensure accuracy.

• 1. Match the invoice to the purchase order to ensure the correct items and quantities were billed.

• 2. Match the invoice to the receiving report to confirm that the goods were received as stated on the invoice.

• 3. Resolve any discrepancies between the three documents to ensure accurate payment.

• Example: If a company orders 100 units of a product, the invoice should refl...read more

The P to P cycle refers to the Procure to Pay cycle, which is the process of obtaining and paying for goods and services.

• The cycle starts with the need for a product or service, followed by the selection of a supplier.

• Next, a purchase order is created and sent to the supplier.

• Upon receiving the goods or services, an invoice is generated and sent to the buyer for payment.

• Finally, the buyer processes the payment to the supplier, completing the cycle.

• Example: A company needs to ...read more

Procure to Pay cycle is the process of obtaining goods or services from a vendor, including requisition, purchase order, receiving, invoice approval, and payment.

• The cycle starts with a requisition for goods or services needed by a department.

• A purchase order is then created and sent to the vendor for the requested items.

• Upon receiving the items, the receiving department confirms the delivery and checks for accuracy.

• An invoice is then received from the vendor and goes through...read more

Procure to Pay cycle involves the process of obtaining goods or services from a vendor and making payment for them.

• Procurement: Identifying needs, selecting vendors, negotiating contracts

• Purchase Order: Issuing PO to vendor for goods/services

• Receipt of Goods/Services: Receiving and inspecting goods/services

• Invoice Processing: Matching invoice with PO and receipt, approving for payment

• Payment: Making payment to vendor

3,4,2 way matching is a process used in accounting to ensure accuracy in financial transactions.

• 3 way matching involves comparing the purchase order, invoice, and receiving report to ensure all details match

• 4 way matching adds a step of comparing the vendor's statement to reconcile any discrepancies

• 2 way matching involves comparing the purchase order and invoice only

Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified.

• For example, when a company receives cash from a customer, the transaction would be recorded by debiting the...read more