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Best Oracle Procure To Pay Interview Questions And Answers
Q1) What exactly do you know about Procure to pay?
Ans: Well, it is an approach which is commonly called as 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.
Q2) What are the important tasks in Procure to pay which you are familiar with?
Ans: The very first thing that enables the users to keep up the pace simply is nothing but planning. Planning is actually mandatory to manage the things at their level best. This clearly states the type of material required and exactly when. It also reflects the price in 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.
Q3) What are the success components of an organization that procurement can always build?
- Market Placement
- Company Identity
- Settling management issues
- Enhancing company capabilities
Q4) Why it is necessary to keep a record of supplies according to you?
Ans: 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.
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Q5) Suppose there is a mismatch in the record of goods which is showing less than the actual availability? How you can handle this issue?
Ans: 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.
Q6) What are the factors that you should pay attention to while choosing a vendor to buy the goods?
Ans: 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.
Q7) Why is stock verification necessary at the time of delivery for the buyers?
Ans: 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 the parties. If the stock is not as per requirement, obviously it is a huge loss for the buyer.
Q8) What could be the impact of a document error when it comes to managing the raw material and other supplies related to production?
Ans: 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
Q9) What do you think is the major factor responsible for the stock related errors?
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Ans: 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.
Q10) Tell us one basic issue which is associated with the Procure to pay?
Ans: 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.
Q11) Which two departments are mainly responsible for the availability of the goods and supplies in the organization for effective production?
Ans: 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.
Q12). 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.
Q13) What do you think is the most common factor responsible for the delay in payments of vendors by organizations?
Ans: 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.
Q14) What is a Goods Receipt?
Ans: 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 that 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.
Q15) 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 with the efficiency
- All wasteful roles in the concerned departments can easily be recorded and spotlighted
Q16) What are the prime responsibilities of a Procurement Manager?
Ans: 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 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.
Q17) When there is a need for you to look for a new supplier
Ans: 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.
Q18) Can organizations bargain with the vendors according to you?
Ans: Of course, this can help them in saving their money and vendors often don’t mind when organizations have to place bulk orders.
Q19) Why do you think the Procurement process is an important strategy?
Ans: There are several core functions related to a business which are directly or indirectly depend on this. This is one of the leading reasons why it is considered as an important module for the corporate strategies in most of the businesses.
Q20) What exactly do you know about the purchasing process?
Ans: Purchasing is actually a subset of procurement. Most people think it’s simply buying goods & services and nothing else. However, it is far beyond the same in real sense. There are many critical steps that need to be focused and a few of them are:
- Invoice recording
- Goods receipt
- Paying to the vendors
- Acknowledgment of purchase
Q21) What will be your strategies when it comes to procuring raw material?
Ans: 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 build with the vendors so that maximum efficiency can be assured.
Q22) What are the important steps in the Procure to Pay Cycle?
Ans: The following are the important steps in the procure to pay cycle:
- Identification of suppliers
- Negotiation (if possible)
- Purchase request authorization
- Record of invoice
- Shipment notice in advance
- Timely payment to the supplier
- Purchase request approval
Q23) Is it possible to modify/tailored the steps in Procure to Pay cycle for suiting the needs
Ans: 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.
Q24) How purchasing and procurement are different from each other?
Ans: 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 task and therefore paying attention to them is very important.
Q25) Does a similar procurement process works for all the organizations
Ans: No, this is not true. Different organizations need to adopt different processes that are different depending on organization size and many other factors.
Q26) What does PO stand for?
Ans: It stands for Purchase order and is basically a document that is issued by the finance department after the things are finalized.
Q27) What are the important tasks that matter a lot when it comes to handling a procurement process?
Ans: There are actually certain things which are really very important. It is not possible for the 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, 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.
Q28) Mention the general tasks in procurement procure in a step-wise manner?
Ans: 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
Q29) Name any one milestone in the procurement process?
Ans: Concept and technology development
Q30) Why is it important to sign a non-disclosure agreement with the vendors before purchase?
Ans: 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.