Recruiter's Glossary

Examples: Year-End Close • Fixed Assets • Balance Sheet

Purchase Cycle

Term from Accounting industry explained for recruiters

The Purchase Cycle, also known as the procurement cycle or purchasing process, is the complete sequence of steps a company follows when buying goods or services. It's like a checklist that starts from identifying what needs to be bought, getting approval, placing the order, receiving items, and finally paying for them. Accountants and finance professionals use this term when talking about tracking company spending and ensuring proper controls are in place. Similar terms include Procure-to-Pay (P2P) cycle or Accounts Payable cycle. Understanding this process is crucial for maintaining accurate financial records and preventing unauthorized purchases.

Examples in Resumes

Managed the entire Purchase Cycle for a manufacturing company with $5M annual spend

Streamlined the Purchase Cycle process reducing processing time by 30%

Implemented automated controls in the Purchase Cycle and Procurement Cycle

Supervised team handling Purchase-to-Pay Cycle operations

Typical job title: "Purchase Cycle Analysts"

Also try searching for:

Procurement Analyst Accounts Payable Specialist Purchase Cycle Coordinator Procurement Officer P2P Specialist Purchasing Specialist Finance Analyst

Where to Find Purchase Cycle Analysts

Professional Associations

Online Resources

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you improve a company's purchase cycle to reduce costs and increase efficiency?

Expected Answer: A strong answer should discuss implementing automation, establishing clear approval workflows, negotiating better supplier terms, and setting up controls to prevent duplicate payments and fraud.

Q: How do you ensure compliance and internal controls within the purchase cycle?

Expected Answer: Should explain separation of duties, documentation requirements, approval hierarchies, and regular audits of the process to ensure accuracy and prevent fraud.

Mid Level Questions

Q: What are the key steps in the purchase cycle and how do they connect?

Expected Answer: Should describe the flow from purchase requisition, to purchase order, receiving, invoice processing, and payment, showing understanding of how each step affects the others.

Q: How do you handle discrepancies between purchase orders, receiving documents, and invoices?

Expected Answer: Should explain the three-way matching process and steps to resolve differences, including vendor communication and documentation requirements.

Junior Level Questions

Q: What documents are typically involved in the purchase cycle?

Expected Answer: Should list basic documents like purchase requisitions, purchase orders, receiving reports, and vendor invoices, explaining the purpose of each.

Q: What is three-way matching in the purchase cycle?

Expected Answer: Should explain that it's comparing the purchase order, receiving document, and invoice to ensure they match before payment is made.