Firstsource Solutions Interview Questions and Answers

Creditor, as the company is receiving cash for the raw material

• The company receiving the cash for the raw material is the Creditor

• The party paying for the raw material in cash is the Debtor

• Example: If a supplier pays cash for raw material, they are the Creditor and the company receiving the cash is the Debtor

To book an invoice and purchase order, you need to match the details on the invoice with the corresponding purchase order and enter them into the accounting system.

• Verify that the details on the invoice match the corresponding purchase order.

• Enter the invoice details into the accounting system, including the invoice number, date, amount, and payment terms.

• Match the invoice to the purchase order in the accounting system to ensure accuracy.

• Record the invoice as a liability in t...read more

Credit Note is issued by a seller to a buyer for reducing the amount payable, while Debit Note is issued by a buyer to a seller for increasing the amount payable.

• Credit Note reduces the amount payable by the buyer to the seller.

• Debit Note increases the amount payable by the buyer to the seller.

• Credit Note is issued when there is an overcharge or return of goods.

• Debit Note is issued when there is an undercharge or additional goods received.

• Both Credit Note and Debit Note are u...read more

3 way matching rule is a process in accounts payable where the purchase order, receiving report, and vendor invoice are compared to ensure accuracy.

• Involves matching the purchase order with the receiving report and vendor invoice

• Ensures that the quantities, prices, and terms on all three documents match

• Helps prevent errors, fraud, and discrepancies in payments

• Example: If a company orders 100 units of a product, receives 90 units, and is invoiced for 100 units, the 3 way match...read more

P2P stands for Procure-to-Pay, which is the process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services.

• P2P involves the entire procurement process from start to finish.

• It starts with a requisition for goods or services, followed by the purchase order, receipt of goods or services, invoice processing, and payment.

• The final step is accounting for the transaction in the company's financial records.

• P2P helps streamline the purchasing proce...read more