200+ Process Developer Interview Questions and Answers

RTR stands for Record to Report, which is a finance and accounting process that involves recording financial transactions and preparing financial statements.

• Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Types of depreciation include straight-line, declining balance, and sum-of-the-years'-digits.

• Journal entries for depreciation involve debiting the depreciation expense account and crediting the accumulated depr...read more

Questions related to accounting principles and practices

• The three golden rules of accounting are: debit the receiver, credit the giver; debit what comes in, credit what goes out; debit all expenses and losses, credit all incomes and gains

• Fictitious assets are intangible assets that have no physical existence, such as goodwill, patents, trademarks, and copyrights

• Contingent liabilities are potential liabilities that may or may not occur in the future, such as lawsuits, warranti...read more

To prepare invoices account, gather all relevant information, create a template, input details accurately, calculate totals, and review for accuracy.

• Gather all necessary information such as customer details, products/services provided, quantities, prices, and any applicable taxes or discounts.

• Create a standardized template or use accounting software to input the invoice details.

• Ensure accuracy by double-checking all information entered, including customer names, addresses, an...read more

I can solve circuit theory problems using my skills.

• I have a strong understanding of circuit theory principles and concepts.

• I am proficient in using circuit analysis techniques such as Kirchhoff's laws and Ohm's law.

• I can solve complex circuit problems by applying various circuit analysis methods.

• I have experience in using simulation software like SPICE to analyze and solve circuit problems.

• I can design and analyze circuits using different components and circuit elements.

• I ha...read more

In my previous organization, we followed a three-way matching process for invoice processing.

• We would match the invoice with the purchase order and the goods receipt to ensure accuracy.

• If there were any discrepancies, we would investigate and resolve them before processing the invoice.

• We also had a system in place for routing invoices to the appropriate approvers based on the amount and department.

• Once approved, the invoices were entered into the accounting system for payment...read more

AP is Accounts Payable, PTP is Procure to Pay. Cycle of AP includes invoice processing, approval, and payment.

• AP is the process of managing and paying invoices from vendors

• PTP is the end-to-end process of procuring goods and services, from identifying the need to paying the vendor

• Cycle of AP includes invoice receipt, verification, approval, and payment

• Accruals are expenses that have been incurred but not yet paid

• 2-way matching is comparing the invoice to the purchase order, w...read more

I look for vendors who have a good reputation, competitive pricing, and a track record of delivering quality work.

• Reputation in the industry

• Competitive pricing

• Track record of delivering quality work

• Ability to meet deadlines

• Flexibility to accommodate changes

• Good communication skills

• Availability of necessary resources

• Experience in the relevant field

• References from previous clients

• Financial stability

P2P stands for Procure-to-Pay. It is a cycle that involves the entire process of purchasing goods or services.

• P2P cycle starts with identifying the need for a product or service

• It then involves selecting a vendor, negotiating prices, and creating a purchase order

• Goods or services are received and verified against the purchase order

• Invoices are received and matched against the purchase order and goods receipt

• Payment is made to the vendor

• Examples of P2P software include SAP Ari...read more

I used t-code F110 for payment processing in my previous organization.

• T-code F110 is used for automatic payment processing in SAP.

• It can be used for both outgoing and incoming payments.

• It allows for the creation of payment proposals and the processing of payments in batches.

• F110 can also be used to print payment advice notes and generate payment summaries.

• I have experience using F110 to process vendor payments and employee reimbursements.

Major roles & responsibilities in Accounts Payable process include invoice processing, vendor management, payment processing, and reconciliation.

• Invoice processing: Receiving, verifying, and recording invoices from vendors.

• Vendor management: Communicating with vendors, resolving discrepancies, and maintaining vendor records.

• Payment processing: Ensuring timely and accurate payments to vendors.

• Reconciliation: Matching invoices with purchase orders and receipts to ensure accurac...read more

Vendor reconciliation is the process of comparing the vendor's account balance with the company's records to ensure accuracy.

• Gather all invoices, receipts, and payment records related to the vendor

• Compare the vendor's statement with the company's records to identify discrepancies

• Investigate and resolve any discrepancies by contacting the vendor or reviewing transaction details

• Adjust the accounts accordingly to reflect the correct balance

• Ensure all outstanding payments are acc...read more

Credit note is a document issued by a seller to a buyer reducing the amount owed, while Vendor Debit note is a document issued by a buyer to a seller for overbilling or return of goods.

• Credit note reduces the amount owed by the buyer to the seller.

• Vendor Debit note is issued by the buyer to the seller for overbilling or return of goods.

• P2P cycle refers to the Procure-to-Pay cycle in which goods or services are procured and payments are made.

• Accounting golden rules include Deb...read more

Answers to accounting related questions for Process Developer role.

• Deferred revenue is the revenue received in advance for goods or services that are yet to be delivered.

• Prepaid expenses are expenses paid in advance for goods or services that are yet to be received.

• Accumulated depreciation is the total depreciation charged on a fixed asset over its useful life.

• Account payable reconciliation is the process of matching the accounts payable balance in the general ledger with the...read more

Vendor management involves overseeing relationships with suppliers to ensure goods and services are delivered efficiently and cost-effectively.

• Vendor management includes activities such as vendor selection, contract negotiation, performance evaluation, and relationship management.

• In SAP, the T-code for vendor creation is XK01.

• Vendor management helps organizations optimize their supply chain, reduce costs, and improve quality.

• Effective vendor management requires clear communic...read more

Company accounts in EXCL can be used for financial management and analysis.

• Company accounts in EXCL can be used to track expenses and revenue.

• They can be used to create financial reports and analyze financial data.

• Company accounts can also be used to manage budgets and forecast future financial performance.

• Examples of company accounts in EXCL include balance sheets, income statements, and cash flow statements.

I can improve as a Fraud Analyst by enhancing my data analysis skills, staying updated on fraud trends, and collaborating with other departments.

• Enhance data analysis skills through additional training or courses

• Stay updated on fraud trends and techniques through continuous learning and research

• Collaborate with other departments such as IT and finance to improve fraud detection and prevention

• Implement new technologies and tools to enhance fraud detection capabilities

Types of auto insurance and their coverage

• Liability insurance: covers damages to other people's property and injuries to others

• Collision insurance: covers damages to your own car in case of an accident

• Comprehensive insurance: covers damages to your car from non-collision incidents like theft, fire, or natural disasters

• Personal injury protection: covers medical expenses for you and your passengers

• Uninsured/underinsured motorist insurance: covers damages and injuries caused by ...read more

To process a payment of 1 lakh dollars, check for accuracy of invoice details, approval from relevant authorities, availability of funds, and compliance with company policies.

• Verify accuracy of invoice details such as amount, vendor information, and payment terms

• Ensure approval from authorized personnel or departments

• Confirm availability of funds in the designated account

• Check for compliance with company policies and procedures regarding payment processing

• Verify any applicabl...read more

I would develop your company marketing by conducting market research, identifying target audience, creating a strong brand image, and utilizing various digital marketing channels.

• Conduct market research to understand customer needs and preferences

• Identify target audience and create buyer personas

• Develop a strong brand image and messaging

• Utilize various digital marketing channels such as social media, email marketing, and SEO

• Track and analyze marketing metrics to measure succe...read more

I have experience in various theories related to process development.

• I have studied Lean Six Sigma methodology and its application in process improvement.

• I am familiar with the Theory of Constraints and its use in identifying bottlenecks in processes.

• I have also studied Business Process Modeling and Notation (BPMN) and its use in process documentation and analysis.

• Additionally, I have experience with Agile methodology and its application in software development processes.

The premium after a 20% discount on $100 insurance premium will be $80.

• Calculate 20% of $100 (20% of 100 = 0.20 * 100 = $20)

• Subtract the discount from the original premium ($100 - $20 = $80)

Yes, the teacode for SAP creating an invoice verification is MIRO.

• The teacode for creating an invoice verification in SAP is MIRO.

• MIRO is used for invoice verification and processing in SAP.

• The MIRO transaction code is used to post vendor invoices in SAP.

• It is important to have knowledge of finance-related processes in SAP as a Process Developer.

Key aspects of my project work include organic conversions, oxidizing and reducing reagents, rate of reaction, laws of thermodynamics, and reaction steps in synthesis.

• Organic conversions are essential in my project work, involving the transformation of organic compounds into different products.

• Oxidizing reagents like potassium permanganate and reducing reagents like sodium borohydride play crucial roles in the conversion process.

• The rate of reaction refers to how quickly reac...read more

OTC stands for Over-The-Counter, where trading of financial instruments occurs directly between parties without the supervision of an exchange.

• OTC markets are decentralized and do not have a physical location like traditional exchanges.

• Participants in OTC markets can negotiate prices directly with each other, leading to more flexibility in terms of trade terms.

• Examples of OTC instruments include stocks, bonds, derivatives, and foreign exchange.

• Exchanges play a role in providi...read more

Pep/KYC/CDD are compliance processes to verify customer identity and prevent money laundering. UBO refers to Ultimate Beneficial Owner.

• PEP stands for Politically Exposed Person, KYC for Know Your Customer, and CDD for Customer Due Diligence.

• ML refers to Money Laundering, which is the illegal process of making large amounts of money generated by criminal activity appear to have come from a legitimate source.

• CDD is a standard process to verify customer identity and assess the r...read more

The life cycle of Chargeback in dispute management involves several stages from initiation to resolution.

• Initiation of chargeback by the cardholder or issuer

• Investigation by the merchant to gather evidence

• Submission of evidence to the acquiring bank

• Review by the issuing bank

• Resolution through arbitration or negotiation

No, O2C (Order to Cash) is a broader process that includes account receivables as one of its components.

• O2C involves the entire process from receiving an order to receiving payment, while accounts receivable focuses specifically on managing outstanding invoices and payments from customers.

• Accounts receivable is a subset of the O2C process, which also includes order processing, billing, and collections.

• O2C is more comprehensive and involves multiple departments such as sales, ...read more

Risk refers to the possibility of loss or harm, while frauds are intentional deception for personal gain.

• Risk can be financial, operational, reputational, or legal in nature.

• Frauds can include embezzlement, identity theft, and false claims.

• Organizations need to have measures in place to identify and mitigate risks and frauds.

• Examples of risk management strategies include insurance, diversification, and contingency planning.

• Examples of fraud prevention measures include backgro...read more

Yes, we still need to prepare a Bank Reconciliation Statement (BRS).

• BRS helps in identifying any discrepancies between the bank statement and bank book.

• Even if the balances are the same, there could be outstanding checks or deposits in transit.

• BRS ensures accuracy and helps in detecting errors or fraudulent activities.

• It provides a clear picture of the actual cash position and helps in financial planning.

• Example: If a check was issued but not yet presented for payment, it won...read more

To create an invoice process for accounts payable, follow these steps:

• Gather all necessary information for the invoice, including vendor name, invoice number, date, and amount

• Create a purchase order if necessary

• Enter the invoice information into the accounting system

• Verify the invoice against the purchase order and receipt of goods or services

• Obtain approval for payment

• Schedule payment and update accounting records

Accountancy basics, TAT, SAP, VLOOKUP, MACRO explained

• Introduction to accountancy and its golden rule

• Unapplied payments are payments received but not yet applied to specific invoices

• Unaccounted payments are payments that cannot be matched to any invoices

• TAT stands for Turnaround Time, the time taken to complete a process

• SAP is a popular enterprise resource planning software used for business operations

• VLOOKUP is a function in Excel used to search for a value in a table

• MACRO i...read more

2 way 3 way match is a process used in accounting to ensure accuracy and consistency in financial transactions.

• 2 way match involves comparing the purchase order and invoice to ensure the quantity and price match.

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

• This process helps identify discrepancies and prevent fraud or errors in the payment process.

• For example, in a 2 way match, if the quantity on the invoice is hig...read more

Reconciliation refers to the process of comparing two sets of records to ensure they are in agreement.

• It involves identifying and resolving any discrepancies between the two sets of records.

• Examples include bank statement reconciliation, inventory reconciliation, and account reconciliation.

• Reconciliation is important for ensuring accuracy and integrity of financial and other records.

• It can also help identify errors or fraud.

• Reconciliation may involve manual or automated proce...read more

Depreciation is the decrease in value of tangible assets, while amortization is the decrease in value of intangible assets.

• Depreciation is used for assets like buildings, machinery, and vehicles.

• Amortization is used for assets like patents, copyrights, and trademarks.

• Depreciation is calculated based on the useful life of the asset.

• Amortization is calculated based on the estimated useful life of the intangible asset.

• Both are non-cash expenses that reduce the value of an asset ...read more

Sourcing cycle refers to the process of identifying, selecting, and acquiring goods or services from suppliers.

• The cycle typically includes identifying the need for a product or service

• Researching potential suppliers

• Negotiating terms and pricing

• Placing orders and receiving goods or services

• Evaluating supplier performance

• Continuous improvement of the sourcing process

• Example: A company needs to purchase raw materials for production. The sourcing cycle involves identifying poten...read more

Two way PO match compares PO with invoice, three way PO match compares PO with invoice and receiving report.

• Two way PO match compares PO with invoice to ensure quantity and price match.

• Three way PO match compares PO with invoice and receiving report to ensure quantity, price, and receipt match.

Accrual accounting recognizes revenue and expenses when they are earned or incurred, regardless of when payment is received or made. Rent entry is a journal entry to record rent expense.

• Accrual accounting is a method of accounting that recognizes revenue and expenses when they are earned or incurred, regardless of when payment is received or made.

• Rent entry is a journal entry to record rent expense.

• Rent expense is debited and cash or accounts payable is credited in the rent e...read more

Contact the inventory manager or supervisor for resolution.

• Contact inventory manager or supervisor immediately

• Verify the discrepancy with relevant documentation

• Discuss potential causes of the mismatch and work towards resolution

DSO stands for Days Sales Outstanding, a measure of how long it takes for a company to collect payment from its customers. Aged buckets are categories used to track overdue payments based on how long they have been outstanding.

• DSO is calculated by dividing accounts receivable by total credit sales and multiplying by the number of days in the period.

• Aged buckets typically include categories like 0-30 days, 31-60 days, 61-90 days, and over 90 days.

• Monitoring DSO and aged bucket...read more

The journal entry for cash withdrawal from bank is a debit to Cash account and a credit to Bank account.

• Debit Cash account for the amount withdrawn

• Credit Bank account for the same amount

• The journal entry will be: Cash account debit, Bank account credit

Non-PO credit memo can be posted using transaction code FB65.

• Open transaction code FB65

• Enter the company code and document date

• Enter the vendor/customer details

• Enter the credit memo amount and GL account

• Save the document

Order to cash application refers to the process of receiving and fulfilling customer orders, and receiving payment for those orders.

• Order to cash involves multiple steps, including order entry, order fulfillment, invoicing, and payment processing.

• The goal of order to cash is to ensure that customers receive their orders in a timely manner and that the company receives payment for those orders.

• Examples of order to cash applications include online shopping platforms, retail sto...read more

Purchase Order is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

• Purchase Order is a legal document that helps in tracking orders and payments.

• It includes details like product or service description, quantity, price, delivery date, payment terms, etc.

• It is used to avoid any confusion or misunderstanding between the buyer and seller.

• For example, a company may issue a purchase order to a vendor for 1...read more

Golden rules of accounting are basic principles to be followed while recording financial transactions.

• The first golden rule is to maintain a record of all transactions.

• The second golden rule is to record all transactions in the appropriate account.

• The third golden rule is to ensure that the accounting equation is always balanced.

• For example, if a company purchases inventory on credit, the transaction should be recorded in the accounts payable account.

• If a company receives cas...read more

AP cycle is the process of managing accounts payable from invoice receipt to payment.

• AP cycle involves receiving invoices, verifying them, recording them in the system, approving them for payment, and finally making the payment.

• PO invoice refers to an invoice that is associated with a purchase order, while non-PO invoice is not linked to a purchase order.

• PO invoices are easier to process as they have already been approved through the purchase order process, while non-PO invoi...read more

Basic checks include vendor details, invoice date, invoice number, line items, total amount. Non-PO invoices are processed without a purchase order. 2-way match compares invoice to purchase order, 3-way match adds receipt of goods.

• Basic checks include verifying vendor details, invoice date, invoice number, line items, and total amount

• Non-PO invoices are processed without a purchase order, typically requiring additional approvals and documentation

• 2-way match involves comparing...read more