1. What is the P2P process?
Ans: The P2P process encompasses all the steps from identifying the need for goods or services, through procurement, receiving, invoicing, and finally paying the supplier.
2. What is a purchase requisition?
Ans: A purchase requisition is an internal request created by a department or individual within a company to initiate the purchasing of goods or services.
3. What is a purchase order (PO)?
Ans: A purchase order is a formal document issued by a buyer to a supplier, outlining the types, quantities, and agreed prices for products or services.
4. What are the key components of a purchase order?
Ans: Key components include order number, supplier information, delivery address, billing address, items requested, quantities, prices, terms and conditions, and payment terms.
5. How do you handle supplier selection and evaluation?
Ans: Supplier selection and evaluation involve researching potential suppliers, assessing their qualifications, requesting quotes, and evaluating based on criteria such as quality, price, delivery, and reliability.
6. What is a three-way match?
Ans: The three-way match is a process that compares a supplier’s invoice with the purchase order and receiving report to ensure accuracy and consistency before authorizing payment.
7. How do you handle discrepancies in invoices?
Ans: Discrepancies can be handled by communicating with the supplier to resolve any differences, adjusting the invoice, and documenting the resolution process.
8. What is an accounts payable aging report?
Ans: An accounts payable aging report shows the outstanding invoices grouped by periods (e.g., 30, 60, 90 days past due) and is used to manage cash flow and payment schedules.
9. What role does technology play in the P2P process?
Ans: Technology streamlines the P2P process with automated requisitioning, approval workflows, electronic data interchange (EDI), and invoice processing systems.
10. What is vendor management?
Ans: Vendor management involves overseeing the relationship between the company and its suppliers, including performance monitoring, contract negotiation, and maintaining healthy relationships.
11. How do you handle urgent or rush orders?
Ans: Urgent or rush orders require prioritization, expediting the procurement process, and effective communication with suppliers to ensure timely delivery.
12. What is a blanket purchase order?
Ans: A blanket purchase order is an agreement between a buyer and a supplier to purchase a specific amount of goods or services over a while at an agreed-upon price.
13. How do you manage inventory levels?
Ans: Managing inventory involves monitoring stock levels, forecasting demand, and placing orders promptly to avoid shortages or overstocking.
