procure to pay

[Former Member]

hi gurus can anyone tell me what do you mean by procure to pay . MM

thanks in advance

sunny

[kunal_ingale]

hi

refer following links

for concept

http://it.toolbox.com/blogs/sap-library/the-procure-to-pay-cycle-10574

https://www.sdn.sap.com/irj/sdn/wiki?path=/display/espackages/procure%2bto%2bpay%2bbusiness%2bobject...

https://www.sdn.sap.com/irj/sdn/wiki?path=/display/espackages/procure%2bto%2bpay

for business process

http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/140_EN_IN.htm

http://help.sap.com/bp_bblibrary/500/html/W30_EN_DE.htm

regards

kunal

award if helpful

[Former Member]

Hi Sunny,

Please find here attached P2P i.e. details of procurement to pay cycle.

PROCUREMENT CONTAINS:

-Determination of requirements: The user department responsible can manually pass a requirement for materials to the Purchasing department via a purchase requisition. If you have set a MRP procedure for a material in the material master, the R/3 System automatically generates a purchase requisition.

- Determination of the source of supply: The R/3 System helps the buyer determine possible sources of supply. You can use determination of the source of supply to create requests for quotation (RFQs) and then enter the quotations. You can also access existing purchase orders and conditions in the system.

- Vendor selection: The system simplifies the selection of vendors by making price comparisons between the various quotations. It automatically sends rejection letters.

- Purchase order processing: The system facilitates data entry by providing entry aids when you are entering purchase orders.

- Purchase order monitoring: The buyer can monitor the processing status of the purchase order online at any time and can determine whether goods or an invoice have been received for the relevant purchase order item. The system also supports reminder procedures.

 -Goods receipt: The system compares the goods receipt quantity with the purchase order quantity.

- Invoice verification: Vendor invoices are checked for accuracy of prices and contents.

PAYMENT CONTAINS:

- Payment processing: Financial Accounting normally deals with vendor payments.

Hope this will help you.

Rewards are helpful.

[AmalaSrinivasa]

Dear Sharma'

P2P cycle is comple cycle of Materials Mgmt i.e.. it starts from the Purchase requisition of the plant then if is a new mat u have to call for tenders and u have to select the tenders and u have to allot those tenders to respective vendor and u have to make a contract with the vendor

and after that u have to creat release order (purchase order ) based on the Contract and u have to receive the materiall after that u have to do the Pa y ment to the vendor. It is looking a small word

Total MM was represendted by this P2P

amalsri

[Former Member]

Dear,

Procure to Pay is the process of obtaining and managing all materials needed. This cycle starts with the source selection, auditing followed by procurement of goods and services. The contracts with the suppliers are managed and can also include supplier managed inventories or direct inventory visibility. It also comprises direct procurement requirements through conversion from demands to purchase orders and confirmation of goods receipt. The incoming materials are then inspected and posted into inventory as part of managing the warehouse. The last activity in this cycle is payment of the suppliers which consists of receiving, entering and checking vendor's invoice for correctness.

Business Goals & Objectives

Lowering Working Capital

Lower work-in-process inventory

Reducing Operating Costs & Increasing Efficiency

Improve procurement processes

Integrate processes across divisions and functions

SAP Business One has the capability to meet the procurement process needs of SMBs - small and medium scale businesses. In a typically organization, there's usually a purchasing department. The responsibility of this department is to handle the procurement of materials. However, this process impacts on other departments - inventory, material requirement planning, production and Financial. Suffice to say that, at any point in time, you are either impacting on stock quantity and/or stock value.

In this posting, I shall be explaining the procurement process in SAP Business One as it relates to inventory and of course financial. Ideally, the process starts with a purchase requisition is created and then purchase order. A goods receipt that is based on the purchase order is then created. Based on the goods receipt, an invoice is then created upon which the outgoing payment transaction is based. However, in SAP Business One, purchase requistion is not catered for.

At this juncture, it is worth mentioning that SAP Business One leverages the draw document wizard to facilitate the creation of a target document (e.g Goods Receipt PO) based on a source document (e.g purchase order). During the copying process, options as to how the inheritance of definitions should be carried out can be customized if need be. It is important to state that the A/P Invoice is the only document that is mandatory in order to register a procurement process. Base documents such as the purchase order and the goods receipt PO are optional.

For further info please visit :

http://it.toolbox.com/blogs/sap-library/the-procure-to-pay-cycle-10574

http://help.sap.com/bp_bblibrary/500/html/W30_EN_DE.htm

Regards,

Syed Hussain.