Browse [LATEST] Oracle Procure To Pay Interview Questions and Answers

Browse [LATEST] Oracle Procure To Pay Interview Questions and Answers

Last updated on 12th Nov 2021, Blog, Interview Questions

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Tarun Kumar (Workday Finance Procure to Pay (P2P) )

Tarun Kumar is the Workday Finance Procure to Pay (P2P) with 5+ years of expertise in the areas of transition and project management, stakeholder management, and cost management. He is also a specialist in RACI-VS, RACI, RACIO, and RASCI.

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    Are you planning to attend an interview for the Oracle P2P role but confused on how to crack that interview and also what would be the most probable P2P Interview Questions that the interviewer may ask? Well, you have reached the right place. ACTE has collected the most frequently asked Oracle Procure to Pay Interview Questions which are often asked in multiple interviews.

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    1. Explain about Accounts Payable.


      The Accounts Payable application component records and manages accounting data for all vendors. It is also an integral part of the purchasing system: Deliveries and invoices are managed according to vendors. The system automatically triggers postings in response to the operative transactions. In the same way, the system supplies the Cash Management application component with figures from invoices in order to optimize liquidity planning.

    2. What is the meaning of an invoice?


      An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.

      In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration. Generally speaking, each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed.

    3. Can you give a sample Process Flow for Procure to Pay Cycle?


      Process flow for Procure to pay will go through two departments(Commercial & Finance.

      Procure – Commercial Department The following steps involve procuring any item

    • Received Requisition from concern Department
    • Request for Quotation from Suppliers at least three
    • Finalize the best Quotation by keeping in mind our companies standard
    • Check the Budget for the same
    • Negotiate with supplier for more economic pricing and finalize the payment terms
    • Process the PO and forward to the supplier to supply the goods and services
    • Pay Cycle – Finance Department

    • The following steps need to be fulfilled
    • The invoice should be matched with PO
    • The invoice should have all the supporting documents such as PO copy, Delivery note duly signed by the receiver (our staff who authorized to received goods/storekeeper.
    • If the invoice is for services then it should be forwarded to the concerned department head or project manager for his confirmation of work done and his approval
    • Even if it not the invoice of the service, it should forward to the concerned person’s approval who -request the PO for the same
    • Finance can reject the invoice if it is not budgeted and ask for the reasons.
    • After receiving all the confirmation and approvals from the concerned department heads the invoice will be updated into the accounting system first in order to avoid any duplication of the Invoice and PO (it is shown on the accounting package if the invoice is duplicate if not, late last it tells you if the PO already used or cancel.

    4. What is the difference between EFT & Wire?


      EFT and WIRE are the most popular form of electronic payment method. EFT stands for electronic fund transfer and it is one of the fastest modes of electronic payment after WIRE. EFT is a batch-oriented mechanism for transferring funds from one bank to another because of which clearing & settlement takes around 2 to 4 days. On the other hand, WIRE is an RTGS i.e. real-time gross settlement system of making the fund transfer on a real-time and gross basis. Clearing and settlement happen on the same day. WIRE is more expensive and faster than EFT.

    5. How many types of purchase order types/agreements are there?


      Standard Purchase Order: You generally create standard purchase orders for a one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known

      Planned PO: A planned purchase order is a long-term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities and estimated cost.

      EX: Buying goods for Christmas from a specific dealer.

      Contract PO: You create a contract purchase agreement with your supplier to agree on specific terms and conditions without indicating the goods and services that you will be purchasing i.e. for $ amount you must supply this much quantity. You can later issue standard PO referencing your contracts and you can encumber these purchase orders if you use encumbrance accounting.

      Blanket PO: You create blanket purchase agreements when you know the detail of goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them.

      A Blanket Purchase Agreement is a sort of contract between you and ur supplier about the price at which you will purchase the items from the supplier in future. Here you enter the price of the item not the quantity of the items. When you create the release you enter the quantity of the items. The price is not updatable in the release. The quantity * price makes the Released Amount. Now suppose your contract with your supplier is such that you can only purchase the items worth a fixed amount against the contract.

    6. Explain the P2P process flow?


      Procure to Pay (p2p. is a process of requesting, purchasing, receiving, paying for and accounting for goods and services. Procure to Pay Lifecycle is one of the important business Process training in Oracle Applications Hyderabad. It’s the flow that gets the goods required to do business. It involves the transactional flow of data that is sent to a supplier as well as the data that surrounds the fulfilment of the actual order and payment for the product or service.

      Create a requisition>> create RFQ>> create a quotation from quote analysis>> generate a PO>>receipt of material>> create Invoice in payables>> transfer to GL

    7. What is a Purchase Requisition and define various requisitions?


      It is a formal request intended to procure/buy something that is needed by the organization. It is created and approved by the department requiring goods and services.

      A purchase requisition typically contains the description and quantity of the goods or services to be purchased, a required delivery date, account number and the amount of money that the purchasing department is authorized to spend for the goods or services. Often, the names of suggested supply sources are also included.

      Basically, requisitions are of two types:

    • Internal requisition
    • Purchase requisition
    • Internal Requisitions are created if the Items are to be obtained from one Inventory location to another location within the same organization. Here the source of the requisition would be INVENTORY. There is no approval process for the internal requisition.

      Purchase Requisitions are created if the goods are obtained from external suppliers. Here the source of the requisition would be SUPPLIERS. The purchase requisitions are sent for approvals.

    8. What are the base tables that are affected when you create a P.O?


      PO_HEADERS_ALL (SEGMENT1 column in this table represents the Document number. This table stores header information of a Purchasing Document. You need one row for each document you create.

      PO_LINES_ALLThis table stores the line information of a Purchasing Document

      PO_LINE_LOCATIONS_ALLThis table contains the information related to purchasing order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line.

      PO_DISTRIBUTIONS_ALLThis table contains the information related to the accounting distribution of a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment

      VENDORS_ALLThis table stores the general information about the suppliers

      PO_VENDOR_SITES_ALLThis table stores information about the supplier sites. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information.

      PO_RELEASES_ALLThis table stores information related to planned and blanket Purchase Order releases. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment.

      PO_VENDOR_CONTACTSThis table stores information about contacts related to the Supplier site. Each row includes the contact name and site.

      PO_ACTION_HISTORYThis table stores information about the approval and control history of a Purchasing Document. This table stores one record for each approval or control action an employee takes on a purchase order, purchase agreement, release or requisition.

    9. What is 2-way, 3-way, 4-way matching?


      Oracle Payables shares purchase order information from your purchasing system to enable online matching with invoices. Invoiced or billed items are matched to the original purchase orders to ensure that you pay only for the goods or services you ordered and/or received.

    • Two–Way: Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid.
    • Three-Way: Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.
    • Four–Way: Purchase order, receipt, acceptance, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

    10. What are the major transactions in RECEIVING?


    • Purchase Order Receipts
    • Internal Requisition Receipts
    • Inventory Inter-Org Transfer Receipts
    • Customer Return Receipts

    11. What is the Pay on Receipt AutoInvoice Program?


      By running this program, we can automatically create an invoice for a PO when we enter a receipt for the respective PO.

    12. What is Invoice Validation Process?


      Before you can pay or create accounting entries for any invoice, the Invoice Validation process must validate the invoice.

      Invoice Validation checks the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Invoice Validation to apply the hold by updating the invoice or the purchase order or changing the invoice tolerances.

    13. What is an approval hierarchy?


      Approval hierarchies let you automatically route documents for approval. There are two kinds of approval hierarchies in Purchasing: position hierarchy and employee/supervisor relationships.

    approval hierarchy

    14. What are the documents that use PO_HEADERS_ALL?


      The following are the documents that use PO_HEADERS_ALL

      RFQ’s, Quotations, Standard Purchase Order, Planned Purchase Order, Blanket Purchase Order and Contracts

    15. Can the original Purchase Order be viewed in any way without resorting to SQL, for a revised Purchase Order?


      The original version of a revised PO cannot be viewed from the PO form or PO summary form. Information on the original PO can be obtained from the PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables using the PO_HEADER_ID column as a common reference using SQL only.

    16. Can we automatically ‘Close’ the Purchase order without receiving the full quantity?


      The Receipt Close Tolerance lets you specify a quantity percentage within which Purchasing closes a partially received shipment. For example, if your Receipt Close Tolerance is 5% and you receive 96% of an expected shipment, Purchasing automatically closes this shipment for receiving.

    17. When does a Purchase Order line get the Status ‘Closed for Receiving’?


      Goods have been received on the system against this line but an invoice has not been matched to the order.

    18. Can we match an Invoice against a line even when it is ‘Closed for Invoicing’?


      The Close for invoicing status does not prevent you from matching an invoice to a purchase order or to a receipt.

    19. What does create an internal order conc request do?


      Create an internal order request that will transfer the IR info to OM interface tables.

    20. Explain the Receipt Routing?


      Receipt Routing is of three types: Direct, Standard and Inspection

    • In Direct once the goods arrive at the destination, we directly move them to a specific Sub-Inv
    • In Standard, once the goods are at the destination, we receive it at the receiving point first and then move them to the Sub-Inv.
    • In Inspection, once the goods are at the destination, we receive it at the receiving point and then we perform inspection and accordingly we either accept it or reject them.

    21. What are the different Purchasing modes in Receiving?


      There are three modes:

    • Online: Receipts are processed online. If there are any errors, they are shown on the FORM itself and don’t let you IGNORE and PROCEED.
    • Immediate: Receipts are processed immediately, but no errors are shown. Errors are recorded in the REC_TRANSACTION_INTERFACE table.
    • Batch: Receipts are processed in batch, but no errors are shown. Errors are recorded in the REC_TRANSACTION_INTERFACE table.

    22. What fields will print on the purchase order?


      The following fields will be printed on a purchase order: item description, unit of measure, quantity, unit price and total, supplier name and address, need by date, requester name, deliver-to location and notes to the supplier.

    23. Is it possible to create a PO from an Internal Requisition?


      No. PO can’t be created from Internal Requisition.

    24. What factors decide whether the Requisition created by the system is Internal or Purchase?


      Sourcing: Internal or Supplier

      Make / Buy: Make or Buy

    25. An approved supplier can perform which four activities (Business rules.?


    • PO Approval
    • Sourcing
    • Schedule Confirmation
    • Manufacture Link To Distributor

    26. How will you enter the Supplier Acceptance of a PO?


      Query for the required PO and choose Acceptances from Special Menu. The type of acceptance can be defined in Quick Codes (All Terms Accepted, Partially accepted etc..

    27. How will you approve a quotation?


      Navigate RFQ and Quotations > Quote Analysis.

    28. How will you decide the life of a Quotation to be expired after a certain period?


      While approving the Quotation, enter an ‘Effective To’ date, so that the Quotation will not be available for reference after the entered date.

    29. Can you limit the usage of Quotation Information only for creating Requisitions?


      While approving the Quotation, select the ‘Shipment Approved Type’ as Requisition so that the Quotation information could be used only for Requisitions.

      The other Types are All Orders (can be used in POs and Requisitions., Purchase Agreements and Standard Pos.

    30. Where will you mention that auto-numbering is required for your RFQs, Quotations and PO?


      The mode of the numbering of RFQs, Quotations and PO (Automatic or Manual and if Automatic, what should be the starting number. should be defined in the Purchasing Options.

    31. While creating the Purchase Documents in the ‘Auto Create’ mode, within it, there is a ‘Manual Mode’. This Manual mode is required for what?


      If the numbering method selected for the document being created is manual, we can enter the document number in the ‘Manual’ mode. Moreover, we can decide which Requisition lines we want to combine and where we want them to appear on the document.

    32. Is it possible to enter Price Break information in an RFQ, if the RFQ Header Type is selected ‘Bid’?


      No. The Price Break window will be available only for Catalog Quotation Class.

    33. What are the different Currency conversion Types?


    • Corporate: This is an exchange rate, generally a standard market rule, determined by the senior financial management of an organization, which will be used throughout the organization.
    • Spot: An exchange rate entered to perform conversions based on the rate on a specific date. It applies to the immediate delivery of a currency.
    • User-Defined: An exchange rate that is specified when a foreign currency journal entry is made, that does not have a daily exchange rate.
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    34. How will you ensure that Receipt Routing mentioned in a Requisition or PO is not override at the time of Receiving?


      Set the profile option ‘RCV: Routing Override’ to No.

      (But in our instance I am getting the profile option named as ‘RCV: Allow Routing Override’ and the Default value and user value field are grayed out, I am not able to fill anything at user value also. why?.

    35. How will you ensure that the Buyer name is enforced in a PO?


      Set the Purchasing Option ‘Enforce Buyer Name’ to Yes.

    36. Is it possible to receive and invoice items supplied by a supplier on Hold?


      Yes. A supplier Hold doesn’t prevent from receiving and invoicing Pos placed earlier to the Hold.

    37. How will you find out the number of documents assigned to a particular Buyer?


    • Navigation: Management > Manage Buyer Workload
    • Select the field ‘Action’ > Review
    • Enter the other required search criteria and press FIND
    • In the popup window we see the following details:
    • Buyer Assigned Urgent Late Needed Open Pos

    38. How will you reassign the Buyer to even out the workload of Buyers?


      Navigation: Management > Manage Buyer Workload

      Select in the field ‘Action’ ‘Assign’

      Enter the required search criteria and FIND

      In the popup window, enter the New Buyer name, select the required lines & save. Upon saving, the lines will be reassigned to the new Buyer.

    39. How will you identify the status of a Purchasing document?


      If the status is to be seen for a specific document, go to the respective document-defining window and see the current status at the Status region.

      If the status of any document is to be found out, go either to the ‘Notification window or the Action history window (Navigation: Special > View Action History..

    40. What is the use of Sourcing Rule?


      The planning process to create Purchase Requisition for Buy items & Internal Requisitions for Make Items uses a Sourcing Rule.

    Sourcing rules

    41. Is it possible to use a Sourcing Rule which will be available in all the organizations?


      Provided that the Sourcing Rule is defined as Global, it will be available in all organizations.

    42. Is it possible to access a Purchase Document currently under approval process using the entry window by anybody as per the access level nor security level?


      No. Nobody can access it through the Entry window.

    43. What are the reasons that an Express processor may reject lines due to validation failures?


    • If the item revision, Subinventory and locator is not available & the entered destination is final. (Revision, Subinventory & Locator are not obtainable as a default from the item definition..
    • If the early / late receipt date tolerance is exceeded & the exception control is set to Reject.
    • If Lot / Serial information is required.
    • If Ship-to- location is not available & the destination is Receiving.
    • If the location is not available for Expense destination type & the destination is final destination.
    • If PO Supplier & Receipt Header Supplier do not match.
    • If other receipts are pending for the specified shipment.

    44. If the Search Supplier Item Catalog window is not appearing while invoking from the Requisition or PO entry window, the System will use which criteria to search?


      The values that are defaulted from the Requisition or PO will be used by the system to query the default source options.

    45. Is it possible to change the supplier after approving the PO?


      No. The supplier can’t be changed after approving the PO. If such situations arise, cancel the PO & create a new PO with the new supplier.

    46. Where will you define the Line Type that has to have defaulted while creating a purchase document?


      Enter the required line type in the field, ‘Line type’ in the Purchasing option.

    47. When will you use Requisition preferences?


      Requisition Preferences are used to enter information that are to be defaulted in a Requisition. When multiple requisitions are to be created with many data the same, all those data can be entered as a Requisition Preference. The preferences defined will be defaulted in all new Requisition Lines as long as the user is exiting the Application. The defined preferences are not saved to the database.

    48. Where do I get a Change Order Request Form?


      The Change Order Request form can be found on the RIAS Forms page and downloaded onto your desktop.

    49. What is the Oracle Exchange?


      The Oracle Exchange is an electronic catalog of goods and services offered by a wide range of suppliers. The Oracle Exchange catalog does not reflect pre-negotiated prices with the University

    50.How Many Types of Purchase Requisition in Oracle Fusion?


      Purchase Requisition is a kind of material request to purchase/buy or some time from internal stores. In purchase Requisition , we do specify which items we need to procure , what’s the quantity we need and which org or department need this material.There are types of Purchase Requisition in Oracle Fusion

    • Internal
    • External
    • Internal Requisition: Internal Requisition, is a kind of request of material within the organization. In Internal Requisition we don’t procure or buy material from outside org but in this we have material inside our org in inventory store in different location and we request to transfer this material or item from store to that location.

      External Requisition: In External Requisition, We do procure or buy material from outside organization. In this we mentioned our material request to procure and based on that purchase team purchase this material from external vendors.

    51. What is ERS(Pay on receipt Program. in Procurement?


      ERS is the Payment on receipt program. This program helps to create the Payables Invoices automatically from Purchase order receipts. ERS or Pay on Receipt program is also one of the standard methods which helps to create the Payables invoices automatically from the Purchase Order Receipts. So, it means whenever we will do the Receiving against the Purchase Order then after that Pay on Receipt program will automatically create the Payable Invoices for that Purchase Receipt. Pay on receipt program will create the Invoices amount on the basis of Quantity received and price of the Item mentioned in the Purchase Order.The lines of the Ap Invoice will depend upon the number of Items received in the Purchase Receipt.

      The amount on the invoice is determined by multiplying the Quantity received by the Purchase Order Item Unit Price. The Payment Terms on the invoice default from the purchase order payment terms. The Payment Currency defaults from the supplier site. Sales Tax is calculated based on the Tax Codes on each Purchase Order Line.

      If the Alternate Pay Site is populated for the Supplier Site used on the Purchase Order, the invoice created is for the Alternate Pay Site, otherwise the Supplier Site on the Purchase Order is used. The Supplier Site used for the invoice must be defined as a Pay Site.

    52. What is Mixed Type Invoice in Oracle Apps ?


      Mixed Invoice is one of the invoice type in the Oracle Payables. You can enter both the Negative and the Positive Amount for this Mixed Type Invoice. This Payment type is not rigid like Standard, Prepayment, Credit & Debit Memo Invoices to enter the amount in the specific signs (Positive or Negative. .

    53. What is Pay Alone in AP Invoice. What is the use of Pay Alone in p2p cycle?


      Pay alone is something related to Invoice Payment. This is the Flag we set for AP Invoice, It Means this invoice will be paid alone. For example, Supplier A has 3 Invoices, but for 1 Invoice we have enabled the Pay Alone Flag Then When we will run the Payment Batch then System will create one Check for two invoices and Separate one Check for Pay Alone Invoice. This Is the Working of Pay Alone.

    54. How many types of approval hierarchy we have in Oracle Procurement?


      We can create three types of approval hierarchy for Purchase Order and Purchase Requisitions.

    • Employee supervisor Hierarchy.
    • Employe Position Hierarchy.
    • AME

    55. What is the action step to stop receiving the specific purchase order line?


      If we want that, the specific po line should not be approve, we can cancel that PO line. Cancelled line never shows for receiving.

    56. What is Primary and Secondary Ledger in Oracle Payables ?


      Primary Ledger is the Main Ledger and Secondary Ledger is the Replica of the Primary Ledger. We Do transactions in the Primary Ledger.

      The main reason of using Primary and Secondary Ledger is the difference in the Organization Requirment and the Statuary Requirment. For example, One US based company office is in India and as per US Company, their Calendar works from Oct to Sep but the in India their calendar works from Apr to Mar SO in this Kind of Requirment, Primary and Secondary Ledger concept comes. Where we can design the Primary calendar as per the US based but can design the Secondary calendar as per India Statuary Requirment.

    57. Is it possible to receive and invoice items supplied by a supplier on Hold?


      Yes. A supplier Hold doesn’t prevent from receiving and invoicing placed earlier to the Hold.

    58. Explain the functioning of Payables Trial Balance report ?


      Payables Trial Balance Report shows the Total Liability or the Supplier Outstanding in the System. This Report shows the Liability in the System supplier and Site Level. This Provide the Summary Information’s for all the Unpaid amount for the Supplier Invoices which are validated.

    59. Types of Supplier Holds in Oracle Fusion?


      In Oracle Fusion, we have two types of supplier holds in oracle fusion.

    • Purchasing holds
    • payments Holds.

    60. What is receipt routing in Oracle p2p? Explain the functioning of receipt routing in p2p cycle.


      Receipt routing method helps to receive the purchase order items into our organization. Based on the receipt routing, these purchase order items deliver to our inventory in organization.

    61. How AP Invoice Payment Due Date Calculates in Oracle p2p cycles?


      Invoice Payment Due date depends on the Two Factors.

    • Payment Terms attached to the Invoice
    • Invoice Date.
    • if Payment Terms is 30 Days and the Invoice Date is 12-Dec-2018

      Then Payment Due Date Will be : 12-Jan-2019

    61. What is ASL in Oracle p2p cycle?


      ASL means the approved supplier list in oracle fusion. Approved supplier list helps to create the automatic PO creating in oracle apps r12. Oracle system automatically select the supplier list from approved supplier list based on the purchased item for creating purchase orders.

    Oracle p2p cycle

    62. How many types of Calendar In Oracle Payables p2p ?


      Accounting Calendar: – Accounting Calendar is related to the Ledger which we attach the GL Ledger during creation. Accounting calendar is the system calendar, If we need to enter any transaction in the System for Specific period then that period in the Accounting Calendar should be open. If the Period is Closed we cannot do any transaction for that period. This Totally controls the system.

      Special Calendar: Special Calendar does not have any link with the Accounting. We define this Calendar to be used by Recurring Invoices, Payables Tax Setups and in the Payments Terms too.

      For Example, With the help of Special Calendar we determine the Tax Authority Invoices Dates.

    63. How many types of receipt routing method in oracle fusion p2p cycle?


      There are three types of Receipt routing method in oracle fusion.

      Direct: – In direct Routing method, Purchase order material will be directly delivered to Store/SubInventory. There is only one action step ‘Deliver’

      Standard: – In Standard Routing method, Purchase order material will be receive first and then delivered to Store/SubInventory so there two action steps Receive & Deliver.

      Inspection: – In Inspection Routing method, Purchase order material will be receive first and then inspect and after inspection, it will be delivered to store. There are three action steps, Receive, Inspect & Deliver.

    64. Which are the Special Calendar Types in oracle p2p ?


    • Recurring Invoice
    • Withholding Tax
    • Payment Terms
    • Key Indicator

    65. Can we Do Cross Currency Payment in Oracle Payables ?


      Cross currency is If I have received the Supplier Invoice in USD but I will pay this Invoice with my Base Currency INR. So this Is Called Cross currency in Oracle Payables. In Oracle apps r12 we have no option to use Cross currency.

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    66. What are the Suppliers Procurement Tables in Oracle p2p?



    67. What are the AP Invoice Tables in Oracle p2p?



    68. Can We pay the AP invoice before Due Date?


      Yes, we can Pay the Invoice Before Due date. For Manual Payment, there is no concern but for Payment Batch, When we are running the Payment Process Request then we need to Enter the Pay Through Date this Date is Very Important, If we have set the Pay Through Date “07-Dec” then this Payment Request will pick only those AP invoices which has been due before “07-Dec-2018”.

      • Payment Priority High: 1
      • Payment Priority Low: 99

    69. Why is it important to sign a non-disclosure agreement with the vendors before purchase?


      There is always some form of sensitive information which organizations have to share with the vendors. Signing such an agreement always makes sure that the information remains secure and there are no chances of leakage of the same.

    70. Name any one milestone in the procurement process?


      Concept and technology development

    71. What are the important tasks that matter a lot when it comes to handling a procurement process?


      There are actually certain things which are really very important. It is not possible for organizations to make sure that everything goes best in the process if they don’t pay attention to this. The very first thing is to pay attention to the selection of vendors who have a good reputation in the market. Once they are selected, the next is to establish the payment terms which make sure no future conflicts. Procurement is actually an umbrella term in which purchasing can be considered integrated.

    72. Mention the general tasks in procurement procure in a step-wise manner?


      Recognizing the need for a product→Specifying the need→ Exploring source options→Looking for price and terms→Making purchasing order→Product Delivery→Purchase Inspection→Invoice Approval & payment to vendor→Maintenance of record

    73. What does PO stand for?


      It stands for Purchase order and is basically a document that is issued by the finance department after things are finalized.

    74. How purchasing and procurement are different from each other?


      Generally, all the sourcing activities such as goods selection, negotiation are related to procurement and are very important for any organization involved in the production. On the other side, purchasing is a process that clearly states how services, as well as goods, are to be ordered by the organization. There are certain methods and each method can influence other tasks and therefore paying attention to them is very important.

    75. Does a similar procurement process works for all the organizations


      No, this is not true. Different organizations need to adopt different processes that are different depending on organization size and many other factors.

    76. Is it possible to modify/tailored the steps in Procure to Pay cycle for suiting the needs


      Yes, this is possible. However, it can sometimes lead to additional problems. Only experts in procurement can consider it reliably and without affecting the overall output. It is necessary to pay attention to the cons associated if one wants to tailor the steps in this cycle to get the desired outcomes.

    77. What will be your strategies when it comes to procuring raw material?


      It is necessary that the material should be of top quality. It shouldn’t be hazardous for the health of the workforce and the environment. Organizations make sure the same is effectively used with minimum wastage and it is actually the responsibility of the concerned departments. A strong relation is to be built with the vendors so that maximum efficiency can be assured.

    78. What are the prime responsibilities of a Procurement Manager?


      One of their prime responsibilities is to buy and make sure of the availability of goods. They need to make sure they are buying the same at the best available prices so that profits for the organization can simply be enhanced. Those with a good background in academics and finance can enable organizations to get results better than expected.

    79. When there is a need for you to look for a new supplier


      There are certain times when the need for the same is felt. The very first thing is when there is a conflict between the vendor and the organization due to any reason. Also, when there is always a delay in the delivery of goods from the vendor side, it’s better to look for a new one. In addition to this, when a supplier fails to meet the desired standards, there is a need for this.

    80. What do you think is the most common factor responsible for the delay in payments of vendors by organizations?


      Well, it’s nothing but the vendor bill or other related documents when traveling through different departments for the fulfillment of the formalities necessary for the payment.

    81. What is a Goods Receipt?


      It is basically an important document that is prepared by the company after receiving the goods from the vendor. It can be used at a later date or stage to compare whether what has been supplied is the same as what was ordered. In addition to this, the receipt can be compared with the purchase order for matching purposes.

    82. Mention some advantages of Oracle procure to pay you are familiar with?


    • It is capable to overcome a number of risks that an organization may have to bear.
    • Preparation of some advanced documents can be made easy with this approach
    • It is capable to keep a record of everything which doesn’t create errors
    • Managers can always make sure of having better control over the system.
    • It is capable to impose a limit on the overall manpower requirement without compromising the efficiency
    • All wasteful roles in the concerned departments can easily be recorded and spotlighted
    advantages of Oracle procure to pay

    83. Which two departments are mainly responsible for the availability of the goods and supplies in the organization for effective production?


      These are the Purchase department and the finance department. Effective communication between both of them is necessary. This is because there are chances that the purchasing department may place an order which is beyond the budget of the finance department. Of course, this will create issues among them both. The purchase department has to get final approval from the finance department before finalizing any order.

    84. Why timely payment is necessary for the vendor?


      Timely payment always makes sure of healthy relations between the vendor and the buyer. Harming this relation is not good for both as it can largely impact the production and the overall availability of raw material. Sometimes vendors delay the delivery because of no other reason than a delay in payments. This can lead to significant losses for the business.

    85. What do you think is the major factor responsible for the stock-related errors?


      Most of the errors declare their presence only when there is a lack of communication between the different departments in an organization. There are actually various factors that can influence the same such as personal conflicts, lack of tools, employees on leave, and so on.

    86. Tell us one basic issue which is associated with the Procure to pay?


      Most of the business faces the problem in the initial stage with the stock and raw supply management. This is because the Procure to pay is basically a process that is related to multiple departments in an organization. It generally makes an impact on accounting, production, as well as on purchase. Because each department has to maintain records at their own end, there are certain issues which they need to face with time.

    87. Why is stock verification necessary at the time of delivery for the buyers?


      It simply enables buyers to make sure that no damaged goods have been supplied to the buyers. In case there is an issue with the goods provided, buyers can raise a refund or a replacement for the same. Verification at a later date than receiving the stock can create conflicts between both parties. If the stock is not as per requirement, obviously it is a huge loss for the buyer.

    88. What could be the impact of a document error when it comes to managing the raw material and other supplies related to production?


      There are many problems that can declare their presence and a few of them are:

      • Delay in operations/productions
      • Wrong delivery
      • Stock mismatch
      • Extra paperwork and time consumption
      • Processing errors

    89. Suppose there is a mismatch in the record of goods that are showing less than the actual availability? How you can handle this issue?


      Well, the best way is to match the stock received with the consumption register. This simply gives all the information regarding the error. If there is still a mismatch, there are chances that the received stock has an error in it.

    90 . What are the factors that you should pay attention to while choosing a vendor to buy the goods?


      The vendor should be in a position to supply them on time. This is necessary to make sure no deadline of the project is violated under any situation. The next big thing about the vendor to pay attention to is the track record of them in providing the supplies. Vendors would cop up with the policies of the organizations and should provide top quality keeping the price as low as possible.


    91. Why it is necessary to keep a record of supplies according to you?


      Well, there are certain benefits to this. The very first thing is users can keep a close eye on the overall consumption. In addition to this, supplies and goods can easily be managed in a reliable manner. This makes it easy for users to understand how and when they have to buy the goods next time. Moreover, a closed eye can be kept on the way the goods are utilized in the organization. There are several other good things that simply enable organizations to derive results in this matter.

    92. What are the important tasks in Procure to pay which you are familiar with?


      The very first thing that enables the users to keep up the pace simply is nothing but planning. Planning is actually mandatory to manage things at their level best. This clearly states the type of material required and exactly when. It also reflects the price at which a company is liable to pay them. Next is to prepare a list that gives information about the vendors who are in a position to supply the requirement reliably. Organizations can ask for the quotation and other useful information from them so that final decisions could be taken.

    93. What exactly do you know about Procure to pay?


      Well, it is an approach that is commonly called P2P. Basically, it is the process of fulfilling the need for raw material which is required to accomplish manufacturing and other important tasks within an organization simply. The payment making of the raw material is also included in this. One of the best things about this cycle is it easily enables them to manage their cash flow without facing major issues.

    94. What is the difference between the Rutgers Exchange and Oracle Exchange?


    Rutgers Exchange
    Oracle Exchange
    This procedure covers the first step of the requisition creation process when requesting from a Rutgers Exchange supplier. This procedure covers the first step of the requisition creation process when doing a catalog request using Oracle Exchange.
    A Rutgers Exchange supplier is an external supplier who has agreed to offer discount pricing to Rutgers and whose goods can be accessed directly through a web link through Internet Procurement. Suppliers on Oracle Exchange will not reflect Rutgers discount pricing. Only Rutgers Exchange suppliers specifically listed under the heading Shop Supplier Sites will reflect Rutgers discount pricing.

    95. What is the Oracle Exchange?


      The Oracle Exchange is an electronic catalog of goods and services offered by a wide range of suppliers. The Oracle Exchange catalog does not reflect pre-negotiated prices with the University.

    96. What does the status pre-approved mean?


      Pre-Approved is the status of a requisition when an authorized approver has approved the requisition and has forwarded the requisition to another individual to review.

    97. What is the difference between a rejected and a returned requisition?


      Only an approver or a reviewer can reject requisition. Only a buyer can return a requisition. A buyer will return a requisition to the preparer for incomplete or inaccurate information.

    98. What is the Requisition Approval Hierarchy?


      A structure that defines the automatic routing of requisitions from a preparer to an approver.

    99. Can I add Rutgers Exchange items to My Favorites List?


      You cannot save RU Exchange items to My Favorites list in the Internet Procurement Application. However, you can save your Rutgers Exchange “favorites” on the website of each Rutgers Exchange Supplier. Also, you may wish to save multi-line item orders in the Exchange Supplier’s shopping cart before you exit the website in the event you do not properly return to the Internet Procurement Application.

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    100. What is a Supplier Site?


      A supplier site is the specific location of a supplier. The naming convention of supplier site is the name of the town/city the supplier is located, followed by a dash, then a number representing the number of the supplier’s locations in that particular town/city. (i.e. Piscataway-01, Piscataway-02.. A supplier may have one or more supplier sites.

    Supplier Site

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