Procurement to Pay Cycle in SAP

How do we map PROCUREMENT TO PAY in SAP?
Thanks

Procure to pay is the process of obtaining and managing the
raw materials needed for manufacturing a product or providing a service. It
involves the transactional flow of data that is sent to a supplier as well as
the data that surrounds the fulfillment of the actual order and payment for the
product or service.
A. Procure to Pay Business Process Steps
1. Create Purchase Requisition - ME51 (Fields: Material/Plant/Quantity/Storage
Location)
2. Create Purchase Order - ME21N. (Purchasing org/ Purchasing group/ Company
Code/ Payment Terms/ Vendor/ Currency /Material/ Quantity/ Plant/ Inco terms/
Net Price/ Tax code/ Storage Location)
3. Goods receipt Purchase order – MIGO (Enter PO No:/ Goods receipt Purchase
order - screen will display/save/ Material document posted will display)
4. Enter Invoice – MIRO (Company Code/ Invoice date/ Reference-PO/ Amount/
Baseline Dt.)
5. Evaluated Receipt Settlement (ERS) with Logistics Invoice Verification –
MRRL (Company code/ Plant/ Goods receipt document/ Fiscal year, goods
receipt/Vendor/ Purchasing Document)
6. Automatic Clearing without Definition of Clearing Currency – F.13 (Company
code/ Fiscal year/ Document number/ Posting date/ Check Select vendors)
7. Automatic Clearing with Definition of Clearing Currency - F13E (same as
above)
8. Clear G/L Account – F-03 (Account/ Company code/ Currency/ Select the
required document- enter Pstky, Account, Amount, Profit center)
9. Automatic Payment - F110 (parameter tab - Posting date/ Document date/
Company code/ Payment method/ next payment date/ Vendor)

Similar Messages

Regarding Procure to Pay-Cycle

Hii Experts,
I am new to MM.
i need to know the basics of Procure to Pay-Cycle...
Plese send me some material regarding this..
Thanks in Advance,
Ashok

Hi Ashok,
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.
The Purchase Order
The purchase order is a document used to request a supplier to supply goods or services. This document usually contains strict conditions on which the supply is based. A purchase order can be tied to cost centers or projects. The essence is to allow for better analysis as to what it's actually meant for. Goods receipt and invoicing ideally references the purchase order.
You can minimize data entry by duplicating an existing purchase order. Also, when purchase order data such as the vendor and items are entered, default values are displayed based on the definition in the relevant master data. For example, the address of the vendor, the payment terms and payment systems, price and item description are copied from the corresponding master data.
The purchase order contains the header part, line details and the footer. The header part contain information about the entire purchase order such as document currency, document date and due date. The line item level contains information about the items ordered such as item code and name. The footer also displays general document information such as payment due and total discount value.
When a purchase order is created, no entry is made in accounting; however, the inventory status is updated based on the quantity ordered. This is reflected in the ordered and in stock fields in the inventory tab of the item master data and the inventory report. The Purchase Order can be accessed under:
Purchasing - A/P > Purchase Order
Goods Receipt PO (GPO)
The second step in the procurement process in SAP Business One is the creation of goods receipt that is based on a purchase order. Ideally, referencing a previously created purchasing order creates this document. However, it can be created without referencing the purchase order. When you record the receipt of goods, the system updates the open item for the purchase order.
At this stage, it is pertinent for the appropriate department to check whether the correct items are delivered and whether the actual quantity has been delivered, over delivery and under delivery is also ascertained at this level. In more complex situation that involves perishable items like pharmaceuticals, the expiration date can also be validated at this stage.
It is possible to create several goods receipt by referencing a single purchase order especially when batch delivery is practiced. When a goods receipt is created based on a purchase order, the information entered in the purchase order is inherited. Hence, the elimination of the need for double entry. However, some of these definitions can also be edited or modified when creating the goods receipt.
When goods receipt PO is created in the system, the inventory status is updated by the quantity received. Also, if stocks are continuously managed, relevant accounting information is updated in financials. The Goods Receipt PO can be accessed under
Purchasing - A/P > Goods Receipt PO
AP Invoice
After purchase order and goods receipt creation, comes invoicing. When you reference a purchase order or goods receipt when creating an invoice, the system copies the data defined in the preceding document(s). This information includes vendor details, item code, item description and quantity. These inherited values can be modified, for example, installment payment. However, the system verifies if there are irregularities between the purchase order or goods receipt and the invoice. System messages are displayed accordingly depending on the business rule defined in the system and invoices can be blocked as a consequence. Basically what happens at the background is that when an invoice is based on a purchase order and goods receipt, the system copies the order prices from the purchase order document and the received quantities from the purchase order document. Furthermore, the system determines the quantities that are yet to be invoiced by calculating the difference between the quantity delivered and the quantity that was invoiced earlier. The system also calculates the expected value for the items, which is a product of the quantity to be invoiced and the order price. This value is not static. It can be modified accordingly. When an invoice is created, the corresponding vendor accounts is updated accordingly. The AP Invoice can be accessed under this path:
Purchasing - A/P > AP Invoice
Outgoing Payment
Most times, outgoing payment is based on account payable invoices. When a vendor is chosen, a list of all invoices awaiting payment is displayed. You simply click on the particular invoice to be paid and effect the transaction. When an outgoing payment transaction is created, corresponding journal entry is created. Payment could be made in check, bank transfer, credit card or cash. If you create outgoing payment for a vendor that has a pre-defined consolidating business partner, the journal entry is created against the consolidating business partner.
It is possible for outgoing payment to be based on one or more invoices that were fully paid. In such case, the transaction of the paid invoices and the outgoing payment are automatically reconciled. Furthermore, the amount due and the paid/credit fields in the paid invoice are updated accordingly and the status of the invoice changes to closed.
The outgoing payment can be accessed under this path:
Banking > Outgoing Payments > Outgoing Payment
Hope this is useful for you.
I can send a doc on email id with screen shots,
Regards ,
Twinkle

PROCURE TO PAY CYCLE

HI.....
I HAVE COMPLETED SAP FICO MODULE ....
I WANT TO CONFIGURE PROCURE TO PAY CYCLE.
CAN ANY ONE PLS TELL ME THE FULL PROCESS OF CONFIGURING THIS CYCLE WITH T CODE.
REGARDS
AMITAVA

P2P:
Demand:
Procurement process generates and manages requests for the purchase of goods.
Demand for purchase items may be a one-time event or may recur in either predictible or random time intervals
Source:
Sourcing process covers the business activities related to the search, qualification, and selection of suitable supplier for requested goods and services
Order:
The Procurement ordering process includes PO placement by the buying organization and PO execution by the supplying organization
Receive:
The Receipt process acknowledges that a PO has been duly executed
For physical goods: includes receipt, inspection, and delivery of goods to inventory or to other designated location.
For Services: Consists of Notification from the requester or the approving person that the service has been performed as agreed
Pay:
The payment process consists of those activities involved in the payment for ordered goods and services.

Pictorial view of business process of Procure to pay cycle.

Hi
Can some one give a detailed diagram explaning the AFS business process of procure to pay cycle
Thanks and regards
Sunil

Hi,
Based on the stock availability in store room, the store manager will create a request for purchasing the material which is recorded in SAP by means of a Purchase requisition.
Now the procurement department will look into this PR, check whether this has to be processed f urther or rejected. If it has to be purchased, it releases teh PR and creates a Purchase order (PO) for a specific vendor. This PO will be send to the correct vendor.
Vendor now manufactures/procures teh material and send it to the store room. Once the material is received in the store room, a Goods receipt(GR) document will be created in SAP. This will increase teh inventory fo the material and the value of teh material in the store room based on teh GR value.
The vendor also sends an invoice for the material he has delivered, to the procurement department. This is received by the dept by means of Invoice Receipt(IR). Later the procurement dept, will pay fo rthe invoice.
This is the basic cycle. There are lot of functionalities within this cycle like selecting the correct vendor for creating POs, updatin gthe correct prices in the PO, checking the PO and GR values, checking PO and IR values, sending PO to vendor by email etc. and so on.

Bussiness content details for Procure to pay cycle

Can i know the details of the bussiness content readily avaliable for implementing the Procure to pay cycle.
e.x)The cubes avaliable and thier functions and how it is useful
Regards,
Dhanasekhar.V

Hi,
I strongly recommend to use the search in the forums as well as having a look at http://help.sap.com for that information as this question has already been asked a lot of times.
regards
Siggi

Reversal Process For Imported Procure to Pay Cycle

Dear Friends,
Whats the procedure to reverse imported purchase process with custom duty involvement.I am facing issues while reversing part-1 of excise register
Regards
Vivek
Edited by: Supergene on Dec 29, 2009 2:58 PM

Hi,
What is Stock PO means??
1. I have to create PR/PO without account assignement catagory ??
2. Material should be stock item or not ? if stock item is mandatory where i need to check for stock item MARD table??
First basic thing when we used account assignment category K ,then its consumption of material and it is decide in t-code OME9
Stock material nothing but when you Procure material it will hit in stock and not direct consumption like cost center
1. I have to create PR/PO without account assignment category ??
for stock material then later it will issue to production for consumption with help of cost center in 201 movement type
2. Material should be stock item or not ? if stock item is mandatory where i need to check for stock item MARD table??{code
of Material type in OMS2 qty update tick is there for you material and plant combination and no account assignment category in PO
cycle will be
PR-PO-MIGO-MIRO-Payement
Regards
Kailas Ugale

SAP Procure to Pay MM-WM-AP Lead

Please can someone tell me a comprehensive detail of what an employer wants someone with experience/knowledge of this. "SAP Procure to Pay MM-WM-AP Lead"
Thanks

the employer is certainly looking for someone who knows what a procure to pay cycle is without asking others, further he wants someone with experience in MM module, WM module and accounts payable who has the skills to take the leadership in this environment.

PROCURE TO PAY AND ORDER TO CASH CYCLE

Can anyone please give me a good material on " Procure to pay cycle" and " Order to cash cycle".
Regards
Amitava

after sales order we have to do direct billing ?
here is a scenario that my client sale a service product out of which he recognise 60% as revenue at the time of sales made and 40% as accrual for next 20 years even though full payment receive immediately or it may installment with in some 4-5 years
can any one help how to map this
Thanks
Priyaranjan

Procure to Pay - Business Process

Hi,
I am looking for some reference docs on Procure to Pay Business Process.
If anybody is having any reference on this, kindly forward the same to me on my personal mail id as [email protected]
Regards
Tushar

Please don't provide personal mail id's as exchange of knowledge won't be effective, if we restrict to personal mail id's.
In order to answer your query, you may please look at the following links
http://blogs.ittoolbox.com/sap/kehinde/archives/the-procure-to-pay-cycle-10574
New to Materials Management / Warehouse Management?

Procure to Pay

Hi Guys,
We have reporting requirement with details from Material cost to General ledger.
This is variance report with comparison of Divisional standard cost on material(split by cost components) to amount posted to general ledger.
Flow of data Material cost >PO>GR-->GL.
We are getting material cost details from 0CO_PC_PCP_1, PO details from 2LIS_02_ITM/2LIS_02_SCL , GR from 2LIS_03_BF and GL from 0FI_GL_4.
F
Please do advise the design for back end on if i can merge this data into one report.

Procurement to Pay basically addresses the requirements from Purchasing & Finance modules i.e MM & PP
Procure to pay cycle involves the following
Purchase requisition -> Purchase Order -> Goods Reciept -> Logistics Invoice Verification -> Outgoing payment
You may have to extract the information of PO's, invoices and payments including vendor balances and line items into BW as part of the project.
Hope this helps
Thanks - Sriram

PeopleSoft - Record to report and procure to pay

Hi all,
I've been working with Oracle EBS all my carear and know i've been required to change my skill to PeopleSoft so I'm a begginer at PeopleSoft. In one month I will be involved in a PeopleSoft project where "procure to pay" and "record to report" knowledge is required. I've been reviewing PeopleSoft documentation but I didn't find any specific document. I've read that PeopleSoft procure-to-pay is an integrated enterprise solution that links purchasing and payables to maximize return on invested capital. I would like to know if procure to pay is a specific module or is a group of modules. In this month I must study in order to be able to work with "procure to pay".
Apart from that, i have a similar question with PeopleSoft "Record to report". I've found that Record to Report is the management process for providing strategic, financial, and operational feedback to understand how a business is performing. This process involves collecting, transforming and delivering relevant, timely, and accurate information to all stakeholders inside and outside the organization, to provideinsight into how their expectations have been met. I would like to know what modules are involves in "Record to report". I mean, I would like to know what i should study.
Probably these questions may be sound stupid but I have no idea about PeopleSoft. Please, i would like to know where to find documentation about Record to report and procure to pay in order to be able to work with this in aproximately a month.
Thanks in advance.

Hi Rachan:
as said by vishwanath, we cant give you particular info. If you can be specific on the report then we can throw light...
to let you start, you can visit the below link for P2P(procure to pay):
http://help.sap.com/saphelp_erp2005/helpdata/en/index_srmaddon.htm
In P2P, basically you get the data from SRM and R/3. you can get reports like vendor evalualtions/shopping cart status/ Contracts/PO's etc. It more of a "how much you spend", where are you spending and who are the top vendors. Information like this can be obtained from P2P area (SRM).
Hope it helps
assign points if helpful
Kalyan

Accts Pay/Rec and Procure to Pay/Order to Cash Question.

I have seen different country specific oracle sites list the following courses
1
Procure to Pay Fundamentals
Order to Cash Fundamentals
2
Implement and use Payables
Implement and use Receivables
Are (1) and (2) the same thing.
thanks

Hi,
i just need someone to clear this up for me,Procure to pay after you pay the suppliers then the cycle is complete,
Normally the Procure to Pay cycle gets completed after you pay to the supplier and the payment passes to the general Ledger module.
do we need to create the item we purchased before or after PO.
Yes you need to create the ITEM before purchasing, as you need to raise the PO to purchase that particular item
2.procure to cash, the cycle is complete after we receive the cash?
Normally here also the cycle is completed after the transactions get posted to GL.
Hope This Helps,
Raghav
Edited by: ~RGV~ on Jan 22, 2010 8:56 AM

Just some clearification (Procure to pay)and (procure to cash)

Hi
i just need someone to clear this up for me,Procure to pay after you pay the suppliers then the cycle is complete,
do we need to create the item we purchased before or after PO.
2.procure to cash, the cycle is complete after we receive the cash?
thanks in advance

Hi,
i just need someone to clear this up for me,Procure to pay after you pay the suppliers then the cycle is complete,
Normally the Procure to Pay cycle gets completed after you pay to the supplier and the payment passes to the general Ledger module.
do we need to create the item we purchased before or after PO.
Yes you need to create the ITEM before purchasing, as you need to raise the PO to purchase that particular item
2.procure to cash, the cycle is complete after we receive the cash?
Normally here also the cycle is completed after the transactions get posted to GL.
Hope This Helps,
Raghav
Edited by: ~RGV~ on Jan 22, 2010 8:56 AM

What is Procure to Pay

Dear all,
Am new to oracle SCM(Oracle R12) , I would like to completely know Procure to Pay Cycle,
Can anyone guide me to know completely about it and what are the steps it includes.
Any help can be highly appreciated.
Thanks&Regards,
Gurujothi

Here its explained clearly,
http://erpschools.com/articles/procure-to-pay-cycle

Procure to pay (p2p) cycle

Hi,
what are the p2p cycle underlying tables
thanks

Check eTRM link, all tables are there. In addition, have a look at:
eTRM
http://etrm.oracle.com
Table Names in Procure To Pay Life Cycle
http://erpstuff.com/topic.asp?TOPIC_ID=1776

Procurement to Pay Cycle in SAP

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