10+ Ptp Analyst Interview Questions and Answers

The PTP cycle consists of three main stages: Pre-purchase, Purchase, and Post-Purchase.

• Pre-purchase stage involves vendor identification, evaluation, selection, and set-up.

• Purchase stage includes purchase requisition and purchase order.

• Post-Purchase stage consists of receiving, invoice handling, invoice processing, and payment processing.

SAP FICO is a central component of the SAP ERP solution for financial management, including managing financial data and generating balance sheets.

• SAP FICO stands for SAP Financial Accounting and Controlling.

• It helps companies manage financial data, track financial transactions, and generate financial reports.

• SAP FICO integrates with other modules like Sales and Distribution (SD) and Materials Management (MM) for a comprehensive view of business operations.

• It allows for real-t...read more

Source documents in P2P cycle include purchase requisition, purchase order, goods receipt note, invoice verification, and payment.

• Purchase Requisition: Document requesting the purchase of goods or services.

• Purchase Order: Document authorizing the purchase of goods or services.

• Goods Receipt Note: Document confirming the receipt of goods.

• Invoice Verification: Document verifying the accuracy of the invoice.

• Payment: Document confirming the payment for goods or services.

A purchase order is a commercial document issued by a buyer to a vendor to request goods or services.

• It includes details such as quantity, price, delivery date, and terms of payment.

• It serves as a legally binding contract between the buyer and the vendor.

• Purchase orders help track and manage purchases, ensuring timely delivery and accurate invoicing.

• Examples of purchase order software include SAP, Oracle, and QuickBooks.

The three primary stakeholders in P2P are end users, purchasers, and payers.

• End users are the individuals who will ultimately use the product or service being purchased.

• Purchasers are the ones responsible for selecting and buying the product or service.

• Payers are the individuals or entities who will provide the funds for the purchase.

Direct expenses are costs directly related to producing goods or services, while indirect expenses are costs not directly tied to production.

• Direct expenses include raw materials, labor, and manufacturing costs.

• Indirect expenses include rent, utilities, and administrative salaries.

• Direct expenses can be easily traced to a specific product or service, while indirect expenses support the overall business operation.

• Direct expenses are variable costs, while indirect expenses are ...read more

AP stands for Accounts Payable, it is the process of managing and recording all outgoing payments for a company.

• AP involves receiving and verifying invoices from vendors

• Processing payments to vendors in a timely manner

• Reconciling accounts payable transactions

• Maintaining accurate records of all transactions

• Ensuring compliance with company policies and procedures

• Example: Receiving an invoice from a supplier, verifying the details, processing the payment, and recording the trans...read more

A purchase order is a document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

• A purchase order is a legally binding document

• It outlines the details of the products or services being purchased

• It includes quantities, prices, delivery dates, and terms of payment

• It serves as a record of the transaction between the buyer and seller

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

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

• It is commonly used in financial accounting to ensure that the company's financial statements are accurate.

• Reconciliation can also be used in other areas such as inventory management and bank statements.

• Examples include reconciling bank statements with accounting records and reconciling in...read more

3 way match is a process in procurement where the purchase order, goods receipt, and invoice are matched to ensure accuracy.

• Involves matching the purchase order with the goods receipt and invoice

• Ensures that the quantity, price, and terms on the invoice match the purchase order and goods receipt

• Helps prevent overpayment or payment for goods not received

• Common practice in accounts payable to verify transactions

Indirect expenses are costs that are not directly tied to the production of a specific product or service.

• Overhead costs such as rent, utilities, and insurance

• Administrative expenses like salaries for non-production employees

• Marketing and advertising expenses

• Depreciation of assets

• Interest on loans

PTP stands for Procure-to-Pay, which is the process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services in a business.

• PTP involves the entire cycle of purchasing goods and services, from requisition to payment.

• It includes activities such as creating purchase orders, receiving goods, approving invoices, and making payments.

• PTP helps streamline the procurement process, improve efficiency, and ensure compliance with company policies and re...read more