200+ Process Developer Interview Questions and Answers

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

Verify invoice details before processing

• Check for accuracy of billing information

• Verify the quantity and price of items listed

• Ensure all necessary approvals and signatures are present

• Confirm that the invoice matches the purchase order

• Check for any discrepancies or errors

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

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

The golden role of accounting is to ensure accurate financial records. P2P cycle process refers to the procurement process from purchase to payment. Accounts payable is the amount owed by a company to its suppliers for goods or services received.

• The golden role of accounting is to maintain accurate financial records and ensure compliance with accounting standards and regulations.

• P2P cycle process involves several steps such as requisition, purchase order, receipt of goods or ...read more

2way match and 3way match are methods used in accounts payable to match invoices with purchase orders and receipts.

• 2way match involves matching the invoice with the purchase order.

• 3way match involves matching the invoice with the purchase order and the receipt.

• 2way match is used for low-value items while 3way match is used for high-value items.

• 2way match is less secure than 3way match as it does not verify receipt of goods.

• Example: A company orders 100 pens from a supplier. T...read more

Accrual concept refers to the recognition of revenue and expenses in the accounting period in which they are earned or incurred, regardless of when payment is received or made.

• Accrual accounting is the opposite of cash accounting, which recognizes revenue and expenses only when cash is received or paid.

• Accruals are recorded as adjusting entries in the financial statements.

• Examples of accruals include accounts receivable, accounts payable, and accrued expenses.

• Accruals help pr...read more

Procure to pay cycle is the process of obtaining goods or services from a vendor and paying for them.

• Includes requisition, purchase order, goods receipt, invoice verification, and payment

• Involves multiple departments such as procurement, finance, and accounts payable

• Ensures proper authorization, receipt of goods/services, and accurate payment processing

• Example: Company A requests 100 units of a product, issues a purchase order, receives the goods, verifies the invoice, and ma...read more

The process of evolving reconciliation involves identifying discrepancies, investigating root causes, implementing corrective actions, and monitoring progress.

• Identify discrepancies in financial records or accounts

• Investigate root causes of discrepancies, such as errors in data entry or miscommunication

• Implement corrective actions to address the root causes and prevent future discrepancies

• Monitor progress regularly to ensure that the reconciliation process is effective

• Example...read more

PO invoice is generated against a purchase order while non-PO invoice is not linked to a purchase order.

• PO invoice is generated when a purchase order is created and the supplier sends an invoice for the goods or services ordered.

• Non-PO invoice is not linked to a purchase order and is usually used for one-time purchases or services.

• PO invoices have a reference to the purchase order number while non-PO invoices do not.

• PO invoices are easier to track and reconcile as they are li...read more

Code 14.1 in Visa cards refers to a decline in authorization due to insufficient funds.

• Code 14.1 indicates that the transaction was declined because the cardholder does not have enough funds available.

• It is a common reason for declined Visa card transactions.

• Cardholders can contact their bank or check their account balance to resolve the issue.

• Examples: 'Transaction declined - Code 14.1', 'Insufficient funds - Code 14.1'

The value of x is unknown.

• The value of x was not provided in the question.

• Without additional information, it is impossible to determine the value of x.

My habits include being organized, punctual, and detail-oriented.

• I have a habit of creating to-do lists and prioritizing tasks.

• I always arrive on time for meetings and appointments.

• I pay attention to small details and double-check my work for accuracy.

• I maintain a clean and organized workspace.

• I have a habit of continuously learning and improving my skills.

Contract administration in O2C domain involves managing contracts with customers and ensuring compliance with terms and conditions.

• It includes drafting and negotiating contracts with customers

• Ensuring that all parties comply with the terms and conditions of the contract

• Managing contract renewals and amendments

• Resolving any disputes that may arise during the contract period

• Maintaining accurate records of all contracts and related documents

• Examples include managing sales contra...read more

Key rules for gold investments include diversification, understanding market trends, and considering storage costs.

• Diversify your investment portfolio to reduce risk

• Understand market trends and factors that influence gold prices

• Consider storage costs and security measures for physical gold investments

An external database or system is a separate data storage or software application that is accessed by another system.

• External databases are used to store data that is separate from the main system's database.

• External systems can include APIs, web services, or other software applications that interact with the main system.

• Examples include connecting a CRM system to an external email marketing platform, or accessing weather data from a third-party API.

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

• The cycle starts with receiving the order from the customer.

• The order is then processed and the product or service is delivered to the customer.

• The customer is then invoiced for the order.

• Payment is received from the customer and applied to the invoice.

• The cycle ends with the payment being recorded and the order being closed.

AP refers to accounts payable while AR refers to accounts receivable.

• AP is the money a company owes to its vendors or suppliers while AR is the money a company is owed by its customers.

• AP is a liability while AR is an asset.

• AP is recorded as a credit while AR is recorded as a debit.

• Examples of AP include unpaid bills for goods or services received while examples of AR include unpaid invoices for goods or services sold.

• AP and AR are both important for managing a company's cash...read more

Insurance is a financial protection against potential future losses.

• Insurance is a contract between an individual or organization and an insurance company, where the individual or organization pays a premium in exchange for financial protection against potential future losses.

• Types of insurance include health insurance, life insurance, auto insurance, and property insurance.

• Insurance helps individuals and organizations manage risk by transferring it to the insurance company.

• I...read more

PO invoices are based on purchase orders while non-PO invoices are not.

• PO invoices are generated when a purchase order is created and sent to the supplier.

• Non-PO invoices are generated when there is no purchase order involved.

• PO invoices have a reference to the purchase order number while non-PO invoices do not.

• PO invoices are easier to track and match with the purchase order and goods receipt.

• Non-PO invoices require more manual effort to process and match with the correct pu...read more

Invoice processing is the handling of invoices from receipt to payment.

• Receipt of invoices from vendors

• Verification of invoice details

• Approval of invoices for payment

• Recording of invoices in accounting system

• Payment of approved invoices

• Reconciliation of invoices with vendor statements

The p2p cycle refers to the procure-to-pay cycle, which involves the entire process of purchasing goods or services and making payments for them.

• The p2p cycle starts with the identification of a need for goods or services.

• A purchase requisition is created and approved.

• A purchase order is generated and sent to the supplier.

• Goods or services are received and inspected.

• An invoice is received from the supplier.

• The invoice is matched with the purchase order and goods receipt.

• The i...read more

PTP process cycle refers to the Purchase-to-Pay process cycle which involves the procurement of goods and services.

• PTP process cycle involves the entire procurement process from identifying the need for goods or services to payment to the supplier.

• The cycle includes steps such as requisition, purchase order creation, goods receipt, invoice verification, and payment processing.

• The process aims to ensure that the organization obtains the required goods and services at the best ...read more

Unidentified funds are known but not assigned, while unallocated funds are not yet identified or assigned.

• Unidentified funds are funds that are known but not yet assigned to a specific purpose or account.

• Unallocated funds are funds that have not yet been identified or assigned to a specific purpose or account.

• Unidentified funds can be allocated once their purpose is determined, while unallocated funds must first be identified before they can be allocated.

• Examples of unidentif...read more

Order to cash is the process of receiving and processing customer orders, invoicing, and receiving payment.

• Order to cash involves all the steps from order entry to payment collection

• It includes order processing, invoicing, credit management, and collections

• Efficient order to cash process improves cash flow and customer satisfaction

One example of unearned revenue in daily life is a gym membership.

• Paying for a gym membership at the beginning of the month but not using it until later

• Subscribing to a streaming service but not watching any content during the subscription period

• Purchasing a gift card for a store but not using it immediately

Balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

• Balance sheet provides a snapshot of a company's financial position.

• It helps in assessing the company's liquidity, solvency, and financial health.

• Assets are listed on one side, liabilities and equity on the other side.

• The balance sheet equation is Assets = Liabilities + Equity.

• Investors, creditors, and management use balance sheets to make informed decisio...read more

Java is a popular programming language known for its platform independence, object-oriented approach, and vast community support.

• Java is platform-independent, meaning it can run on any operating system

• Java is object-oriented, allowing for modular and reusable code

• Java has a vast community and library support, making it easy to find solutions to problems

• Dependency injection is a design pattern used in Java to reduce coupling between classes

• OOPS stands for Object-Oriented Progr...read more

Contingent liabilities are potential liabilities that may arise in the future depending on the outcome of a specific event.

• Contingent liabilities are not actual liabilities yet, but they have the potential to become actual liabilities in the future.

• They are usually disclosed in financial statements as footnotes or in the management discussion and analysis section.

• Examples of contingent liabilities include pending lawsuits, warranties, and guarantees.

• Contingent liabilities can...read more

Decision table is a tabular representation of all possible conditions and corresponding actions, while decision tree is a graphical representation of decision-making process.

• Decision table lists all possible conditions and corresponding actions in a tabular format.

• Decision tree is a graphical representation of decision-making process, showing different paths and outcomes.

• Decision table is more suitable for complex conditions with multiple variables, while decision tree is eas...read more

Genpact is a global professional services firm that provides business process outsourcing and digital transformation services.

• Founded in 1997 as a business unit of General Electric, later becoming an independent company in 2005

• Headquartered in New York City, with operations in over 30 countries

• Offers services in areas such as finance and accounting, procurement, analytics, and customer service

• Known for its expertise in process optimization and automation

• Works with clients acr...read more

The accounts payable cycle is the process of receiving, verifying, and paying invoices from vendors.

• Invoices are received from vendors for goods or services provided

• Invoices are verified for accuracy and approved for payment

• Payments are made to vendors within the agreed upon terms

• The cycle repeats for each invoice received

Debit note is a document sent by a buyer to a seller, indicating a payment owed. Credit note is a document sent by a seller to a buyer, indicating a refund or credit owed.

• Debit note is issued by the buyer to the seller for payments owed.

• Credit note is issued by the seller to the buyer for refunds or credits owed.

• Debit note helps in tracking outstanding payments, while credit note helps in tracking refunds or adjustments.

• Example: A buyer sends a debit note to a seller for an i...read more

P2P Cycle refers to Procure-to-Pay Cycle which involves the process of purchasing goods or services and paying for them.

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

• Then, a purchase requisition is created and sent for approval

• Once approved, a purchase order is generated and sent to the supplier

• The supplier delivers the goods or services and an invoice is received

• The invoice is verified and approved for payment

• Finally, payment is made to the supplier

• Examp...read more

The date of invoice is necessary for tracking payment deadlines, ensuring accurate record-keeping, and resolving disputes.

• Helps track payment deadlines and avoid late fees

• Ensures accurate record-keeping for financial purposes

• Facilitates resolving disputes by providing a clear timeline of transactions

VLOOKUP is a function in Excel used to search for a value in a table and return a corresponding value from another column.

• Select the cell where you want the result to appear

• Type =VLOOKUP(

• Enter the value you want to search for

• Enter the range of cells where the table is located

• Enter the column number containing the value you want to return

• Enter FALSE for an exact match or TRUE for an approximate match

Pivot tables in Excel are used to summarize and analyze large amounts of data in a structured format.

• Pivot tables help in organizing and summarizing data from a larger dataset.

• They allow users to analyze data by sorting, counting, and summarizing information.

• Users can easily create charts and graphs based on the summarized data from pivot tables.

• Pivot tables can be used to quickly identify trends and patterns in data.

• For example, a sales team can use a pivot table to analyze ...read more

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

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

• It is used to spread the cost of an asset over its useful life, matching the expense with the revenue it generates.

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

• Example: A company purchases a machine for $10,000 with a useful life of 5 years. Us...read more

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

• Reconciliation involves identifying discrepancies between the two sets of records.

• It often includes investigating the reasons for discrepancies and resolving them.

• Examples of reconciliation include bank statement reconciliation, inventory reconciliation, and financial statement reconciliation.

Accruals typically posted include expenses, revenues, interest, and taxes.

• Expenses accrued for services received but not yet paid for

• Revenues accrued for services provided but not yet invoiced

• Interest accrued on loans or investments

• Taxes accrued based on estimated liabilities

I have experience with various TCodes and processes in SAP, including but not limited to MM, SD, and FI modules.

• Proficient in TCodes such as MM01 (Create Material Master), VA01 (Create Sales Order), and FB50 (Post Journal Entry)

• Knowledge of end-to-end processes in modules like Materials Management (MM), Sales and Distribution (SD), and Finance (FI)

• Experience in analyzing and optimizing existing processes to improve efficiency and accuracy

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

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet

• It is calculated using various methods such as straight-line, declining balance, and sum-of-the-years' digits

• Examples of assets that can be depreciated include buildings, vehicles, machinery, and equipment

Researching vendors involves identifying needs, evaluating options, and comparing prices and quality.

• Determine specific needs and requirements

• Identify potential vendors through online research, referrals, and industry events

• Evaluate vendors based on factors such as experience, reputation, and quality of products/services

• Compare prices and negotiate terms

• Check references and reviews before making a final decision

Before raising AR-Invoice, certain steps need to be followed.

• Verify the accuracy of the invoice details

• Ensure that all necessary approvals have been obtained

• Check for any outstanding payments or credits

• Confirm that the customer's information is up-to-date

• Ensure that the invoice is being sent to the correct recipient

• Double-check the invoice amount and currency

• Attach any necessary supporting documents

• Send a copy of the invoice to the customer for their records

Tiger Tyagarajan is the CEO of Genpact.

• Tiger Tyagarajan has been the CEO of Genpact since 2011.

• He has played a key role in driving Genpact's growth and transformation.

• Under his leadership, Genpact has expanded its global footprint and diversified its service offerings.

Amortization is the process of spreading out loan payments over time. R2R stands for Record to Report, which is a finance and accounting process.

• Amortization is the process of paying off a debt over time through regular payments.

• R2R (Record to Report) is a finance and accounting process that involves collecting, processing, and reporting financial information.

• Amortization is commonly used in mortgages, where monthly payments include both principal and interest.

• R2R involves ac...read more