Here are the top 12 most frequently asked questions about P2P (Procure-to-Pay) process in SAP, along with their answers | TOP 12 Interview Questions and Answers p2p cycle in SAP MM | p2p process in sap | 2 way match in accounts payable | 3 way matching for accounts payable
TOP 12 Interview Questions and Answers p2p cycle in SAP MM
Q1 .what is p2p process in sap?
Answer : P2P (Procure-to-Pay) process in SAP refers to the complete process of procuring goods or services from an external vendor from sending a purchase requisition to processing the vendor invoice and making the payment.
Q2. What are the main components of P2P process in SAP?
Answer: The main components of P2P process in SAP are: purchase requisition, purchase order, goods receipt, invoice verification and payment.
Q3.What is the role of SAP MM module in P2P process?
Answer: SAP MM (Materials Management) module plays a crucial role in P2P process by providing functionality for procurement and inventory management.
Q4.How is P2P process integrated with other SAP modules?
Answer: P2P process is integrated with other SAP modules such as SAP FICO (Financial Accounting and Controlling), SAP SD (Sales and Distribution) and SAP PP (Production Planning) to ensure a seamless flow of information and data across the organization.
Q5.What is purchase requisition in SAP P2P process?
Answer: Purchase requisition in SAP P2P process is a request for goods or services initiated by an employee in the company that triggers the procurement process.
Q6.What is the difference between purchase order and purchase requisition in SAP?
Answer:
A purchase requisition is a formal demand for goods or services and a purchase order is a legally binding agreement that commits a vendor to provide them at a predetermined cost.
Q7.What is goods receipt in SAP P2P process?
Answer: Goods receipt in SAP P2P process is the process of recording the delivery of goods from a vendor and updating the SAP system accordingly.
Q8.What is invoice verification in SAP P2P process?
Answer: Invoice verification in SAP P2P process is the process of comparing the invoice received from the vendor with the purchase order and goods receipt to ensure that the invoice amount is correct.
Q9.What is the role of SAP FICO in P2P process?
Answer: SAP FICO (Financial Accounting and Controlling) module plays a role in P2P process by providing functionality for financial accounting controlling and reporting.
Q10.What is the importance of P2P process in SAP?
Answer:The P2P process plays a crucial role in SAP by enhancing procurement efficiency and effectiveness ensuring timely product delivery reducing procurement expenses and boosting overall financial performance.
Q11. 2 way matching in p2p (2 way match in accounts payable )
Answer.2 way matching in P2P (Procure-to-Pay) process is a process of comparing the purchase order and goods receipt against the vendor invoice to ensure that the invoice amount is correct and matches the agreed terms.
Two-way matching ensures that the received goods or services correspond to the ordered items and the agreed purchase price is accurate. This helps to prevent errors and overpayments and ensures that the vendor invoice is accurate and can be processed for payment.
Two-way matching is typically performed in the SAP system and involves the following steps:
- Comparison of the purchase order with the vendor invoice to ensure that the items ordered and the price agreed are correct.
- Comparison of the goods receipt with the vendor invoice to ensure that the goods or services received match the items ordered.
- Generation of a payment proposal if the two-way matching criteria are met.
- Approval of the payment proposal and processing of the payment to the vendor.
To achieve an efficient effective and accurate procurement process and guarantee accurate vendor payment, two-way matching is essential.
Q.12. 3 way matching in p2p (3 way matching for accounts payable )
Answer . 3 way matching in P2P (Procure-to-Pay) process refers to the process of comparing the purchase order, goods receipt and vendor invoice to ensure that the invoice amount is correct and matches the agreed terms.
Three-way matching aims to verify that the procurement information including received goods or services, ordered items and agreed price is accurate and complete. This helps to prevent errors and overpayments and ensures that the vendor invoice can be processed for payment.
Three-way matching is typically performed in the SAP system and involves the following steps:
- Comparison of the purchase order with the vendor invoice to ensure that the items ordered and the price agreed are correct.
- Comparison of the goods receipt with the vendor invoice to ensure that the goods or services received match the items ordered.
- Comparison of the goods receipt with the purchase order to ensure that the goods or services received match the items ordered and the price agreed.
- Generation of a payment proposal if the three-way matching criteria are met.
- Approval of the payment proposal and processing of the payment to the vendor.
Three-way matching is a more thorough approach for ensuring the accuracy of the procurement process and offers an added level of control and security in contrast to two-way matching. By incorporating a third validation step three-way matching helps to ensure that the procurement process is efficient effective and accurate and that the vendor is paid the correct amount.
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