Best Oracle Procure To Pay Interview Questions and

Answers
1. 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.

2. 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.

3. What are the success components of an organization that

procurement can always build?

 Market Placement
 Company Identity
 Settling management issues
 Enhancing company capabilities

4. 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.
5. 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.

6. 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.

7. 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.

8. 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

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.
14. 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.

15. 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

16. 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.

17. 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.

18. Can organizations bargain with the vendors according to you?

Of course, this can help them in saving their money and vendors often don’t mind
when organizations have to place bulk orders.
19. Why do you think the Procurement process is an important
strategy?

There are several core functions related to a business that is directly or indirectly
dependent on this. This is one of the leading reasons why it is considered an important
module for corporate strategies in most businesses.

20. What exactly do you know about the purchasing process?

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 the 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

21. 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.

22. What are the important steps in the Procure to Pay Cycle?

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

23. 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.

24. 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.

25. 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.

26. 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.

27. 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.

28. 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

29. Name any one milestone in the procurement process?

Concept and technology development

30. 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.