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P2P Interview Questions and Answers

The Procure to Pay (P2P) process encompasses the entire workflow from identifying the need for goods/services to vendor payment, involving stages such as purchase requisition, vendor selection, and invoice processing. Key concepts include two-way and three-way matching for invoice verification, blanket purchase orders, and the importance of controls and KPIs in managing the P2P cycle. Efficient P2P processes can significantly impact working capital by optimizing cash flow and ensuring timely payments.

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11 views3 pages

P2P Interview Questions and Answers

The Procure to Pay (P2P) process encompasses the entire workflow from identifying the need for goods/services to vendor payment, involving stages such as purchase requisition, vendor selection, and invoice processing. Key concepts include two-way and three-way matching for invoice verification, blanket purchase orders, and the importance of controls and KPIs in managing the P2P cycle. Efficient P2P processes can significantly impact working capital by optimizing cash flow and ensuring timely payments.

Uploaded by

gantiamruta03
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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P2P (Procure to Pay) Interview

Questions and Answers


Q: What is the Procure to Pay (P2P) process?
A: Procure to Pay is the end-to-end process that starts with identifying the need for
goods/services and ends with vendor payment. Key stages include:
- Purchase Requisition (PR) creation
- Request for Quotation (RFQ) and Vendor selection
- Purchase Order (PO) issuance
- Goods Receipt (GRN)
- Invoice Receipt and Verification
- Payment Processing
- Reporting and Reconciliation

Q: What documents are involved in the P2P cycle?


A: - Purchase Requisition (PR)
- Request for Quotation (RFQ)
- Quotation
- Purchase Order (PO)
- Goods Receipt Note (GRN)
- Invoice
- Payment Voucher

Q: Explain three-way and two-way matching in invoice processing.


A: - Two-Way Match: PO vs. Invoice – used when goods receipt is not needed.
- Three-Way Match: PO vs. Invoice vs. GRN – ensures that all three documents match before
payment approval.

Q: What is a blanket purchase order?


A: A blanket PO is used for recurring purchases over a period of time with a predefined total
value (e.g., maintenance services).

Q: What is the difference between a stock and a non-stock PO?


A: - Stock PO: Used for materials maintained in inventory (e.g., raw materials).
- Non-stock PO: Used for services or consumables not tracked in inventory.

Q: What is GR/IR clearing?


A: GR/IR is an interim account used to record goods received but not yet invoiced. The
account is cleared when the invoice is received and posted.
Q: What are common reasons for invoice blocking?
A: - Price or quantity mismatches
- Missing PO reference
- Duplicate invoice
- Late delivery
- Tax or currency discrepancies

Q: How do you resolve a blocked invoice?


A: - Analyze the root cause
- Communicate with the buyer or vendor
- Adjust PO or invoice
- Repost after correction

Q: What is a release strategy in SAP P2P?


A: Release strategy is the approval workflow for PRs or POs based on parameters like value,
material type, or cost center.

Q: What are some key performance indicators (KPIs) for the P2P cycle?
A: - PR to PO cycle time
- First-pass invoice match rate
- On-time vendor payments
- Number of blocked invoices
- PO compliance rate

Q: How do you handle duplicate vendor creation?


A: - Use duplicate checks in ERP systems
- Assign unique vendor codes
- Periodic vendor cleansing
- Approval workflow for vendor creation

Q: How are services handled in the P2P process?


A: Services are procured through service POs. A service entry sheet (SES) is created and
approved to confirm service delivery before payment.

Q: What are some common controls in the P2P process?


A: - Segregation of duties
- PO approval limits
- Invoice validation checks
- Vendor master governance
- Audit trail and logging

Q: What is the impact of P2P on working capital?


A: Efficient P2P processes optimize working capital by:
- Early payment discounts
- Avoiding late payment penalties
- Managing cash flow

Q: What ERP systems support the P2P process?


A: - SAP (MM, SRM, Ariba)
- Oracle E-Business Suite
- Microsoft Dynamics
- Coupa
- NetSuite

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