10+ P2P Accounts Payable Executive Interview Questions and Answers

Cost element and cost center are key concepts in accounting for tracking and allocating costs within an organization.

• Cost element refers to the specific types of costs incurred by an organization, such as materials, labor, or overhead.

• Cost center is a specific department, team, or function within an organization that is responsible for incurring costs.

• Cost elements are assigned to cost centers to track and allocate costs accurately.

• Examples: Cost element - Direct materials, C...read more

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business.

• Accounting involves recording financial transactions such as sales, purchases, and payments.

• It also includes summarizing and analyzing these transactions to produce financial statements like balance sheets and income statements.

• Accounting helps in providing insights into the financial health of a business and making informed decisions.

• There are different branches...read more

Accounts receivable and accounts payable are two important aspects of a company's financial operations.

• Accounts receivable refers to money owed to a company by its customers for goods or services provided.

• Accounts payable refers to money owed by a company to its suppliers or vendors for goods or services received.

• Accounts receivable is an asset on the balance sheet, while accounts payable is a liability.

• Managing accounts receivable involves tracking payments from customers an...read more

SAP supports over 160 currencies worldwide.

• SAP supports over 160 currencies for global transactions.

• Currencies can be configured in SAP using transaction code OB22.

• Each currency is assigned a unique currency code (e.g. USD for US Dollar, EUR for Euro).

Accounts payable process involves managing and recording financial obligations to vendors and suppliers.

• Accounts payable process includes receiving invoices from vendors and verifying them for accuracy

• The process also involves obtaining approvals for payments and issuing payments to vendors

• It is important to maintain accurate records of all transactions and ensure timely payments to avoid late fees or penalties

• Automation of accounts payable process can improve efficiency and ...read more

Posting PO invoice involves matching the invoice to the purchase order and receipt, entering the invoice details into the accounting system, and approving for payment.

• Match the invoice to the purchase order and receipt to ensure accuracy

• Enter the invoice details such as invoice number, date, amount, and vendor information into the accounting system

• Verify that the goods or services were received and are in accordance with the purchase order

• Obtain necessary approvals for paymen...read more

Golden rules are basic principles or guidelines that are considered essential or fundamental in a particular field or context.

• Golden rules are foundational principles that serve as a guide for decision-making and behavior.

• They are often universally accepted and are considered essential for success.

• Examples of golden rules include 'treat others as you would like to be treated' and 'honesty is the best policy.'

There are various types of projects, including internal projects, external projects, research projects, and development projects.

• Internal projects focus on improving processes within the organization.

• External projects involve working with external partners or clients.

• Research projects aim to gather data and analyze findings.

• Development projects focus on creating new products or services.

• Examples: IT system implementation project, marketing campaign project, new product develo...read more

Various types of invoices should be processed in P2P Accounts Payable.

• Purchase invoices for goods and services

• Expense invoices for employee reimbursements

• Utility invoices for electricity, water, etc.

• Rent invoices for office space

• Tax invoices for government taxes

• Credit memos for returns or adjustments

• Intercompany invoices for transactions between company entities

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

• The Golden Rule of Debit and Credit: For every debit entry, there must be a corresponding credit entry.

• The Golden Rule of Real Accounts: Debit what comes in, credit what goes out.

• The Golden Rule of Personal Accounts: Debit the receiver, credit the giver.

• The Golden Rule of Nominal Accounts: Debit all expenses and losses, credit all incomes and gains.

PTP cycle stands for Procure-to-Pay cycle, which is the process of obtaining goods or services from a vendor to making a payment for them.

• PTP cycle involves requisitioning, purchasing, receiving, invoicing, and payment processes.

• It starts with a purchase requisition, followed by purchase order creation, goods receipt, invoice receipt, and ends with payment to the vendor.

• The cycle ensures that goods or services are received, invoices are accurate, and payments are made in a ti...read more

An account is a record of financial transactions for a specific asset, liability, equity, revenue, or expense.

• An account is used to track the financial activity related to a specific category.

• Accounts are typically organized in a chart of accounts, which groups similar accounts together.

• Examples of accounts include cash, accounts payable, revenue, and expenses.

• Each account has a unique account number for identification purposes.

Journal entry for sales in a company involves debiting accounts receivable and crediting sales revenue.

• Debit accounts receivable to recognize the amount owed by customers for goods or services sold

• Credit sales revenue to recognize the revenue earned from the sale

• Ensure the journal entry follows the double-entry accounting system

SAP T codes are transaction codes used in SAP systems to execute specific functions.

• SAP T codes are alphanumeric codes that represent specific functions in SAP systems.

• They are used to execute various tasks such as creating, modifying, or deleting data in SAP modules.

• Each SAP module has its own set of T codes, such as FI for financial accounting or MM for materials management.

• Examples of SAP T codes include FB01 for creating a financial document, ME21N for creating a purchase...read more

The P2P process involves the entire cycle of purchasing goods or services, receiving and approving invoices, and making payments.

• P2P stands for Procure-to-Pay, which is a process that covers requisitioning, purchasing, receiving, paying for, and accounting for goods and services.

• It starts with a purchase requisition, followed by purchase order creation, goods receipt, invoice receipt, invoice approval, and payment processing.

• Efficient P2P processes help organizations streamli...read more