10+ P2P Accounts Payable Executive Interview Questions and Answers

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 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

General entries are created to record financial transactions in the accounting system.

• Identify the accounts involved in the transaction

• Determine whether it is a debit or credit entry for each account

• Ensure that the total debits equal the total credits

• Record the entry in the general ledger

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

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.

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