10+ P2P Process Associate Interview Questions and Answers

Procure-to-pay is the process of integrating purchasing and accounts payable systems to create greater efficiencies.

• P2P involves the entire process from requisitioning goods or services to making the final payment.

• It includes steps such as vendor selection, purchase order creation, goods receipt, invoice processing, and payment.

• The goal of P2P is to streamline the procurement process, reduce costs, and improve supplier relationships.

• Automation and digitalization play a key ro...read more

Accrued income is revenue that has been earned but has not yet been received.

• Accrued income is recorded as a current asset on the balance sheet.

• It represents revenue that has been recognized but not yet received in cash.

• Common examples include interest income, rent income, and service fees.

• Accrued income is typically recorded through an adjusting entry at the end of an accounting period.

• It is important for accurate financial reporting and matching revenue with the period it w...read more

Financial statement is a document that summarizes a company's financial activities and position. Income statement shows company's revenues and expenses over a period of time.

• Financial statement is a report that provides an overview of a company's financial performance.

• It includes balance sheet, income statement, cash flow statement, and statement of changes in equity.

• Income statement shows company's revenues, expenses, and profits or losses over a specific period of time.

• It h...read more

Depreciation is the decrease in value of an asset over time.

• Depreciation is a method used in accounting to allocate the cost of an asset over its useful life.

• It reflects the wear and tear, obsolescence, or loss of value of an asset.

• Depreciation expense is recorded on the income statement and reduces the asset's value on the balance sheet.

• There are various methods of calculating depreciation, such as straight-line, declining balance, and units of production.

• For example, a comp...read more

Luca Pacioli is considered the father of accounting.

• Luca Pacioli, an Italian mathematician, is often credited as the father of accounting for his work in the 15th century.

• He wrote a book called 'Summa de Arithmetica, Geometria, Proportioni et Proportionalita' which included a section on double-entry bookkeeping.

• Double-entry bookkeeping is a foundational concept in accounting that Pacioli helped popularize.

Inter company refers to transactions or activities that occur between two or more companies within the same corporate group.

• Inter company transactions involve the transfer of goods, services, or funds between different entities within the same parent company.

• These transactions are typically recorded in the financial statements of each individual company involved.

• Inter company activities can include inter company sales, inter company loans, inter company service agreements, et...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 cycle from requesting goods/services to paying for them.

• It includes steps like requisitioning, purchase order creation, goods receipt, invoice processing, and payment.

• P2P aims to streamline and automate the procurement process to improve efficiency and reduce costs.

• It often involves software systems like ERP or...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It reflects the wear and tear, obsolescence, or decrease in value of the asset.

• Common methods of calculating depreciation include straight-line, double declining balance, and units of production.

• Example: A company purchases a delivery truck for $50,000 with a useful life of 5 years. Using straight-line depreciation...read more

The golden rules are fundamental principles or guidelines that should be followed in a particular field or situation.

• Golden rules are basic principles that should not be violated

• They are often considered as the foundation for success

• They are universally accepted and applicable in various contexts

Types of PO in SAP include standard PO, blanket PO, contract PO, and planned PO. SAP tcode for PO is ME21N.

• Standard PO is used for one-time purchases

• Blanket PO is used for recurring purchases over a period of time

• Contract PO is used for long-term agreements with suppliers

• Planned PO is used for materials that are not yet fully specified

• SAP tcode for creating a PO is ME21N

The golden rule of accounting states that debit what comes in and credit what goes out.

• Debit what comes in and credit what goes out

• Assets = Liabilities + Equity

• Revenue = Expenses + Net Income

P2P process involves the entire cycle of purchasing goods or services, from requisition to payment.

• Requisition: Request for goods or services is made by the user or department.

• Purchase Order: Formal document is created to authorize the purchase.

• Receipt of Goods/Services: Goods or services are received and inspected.

• Invoice Processing: Supplier sends invoice, which is matched with purchase order and receipt.

• Payment: Payment is made to the supplier.

• Vendor Management: Managing r...read more