Procure to Pay (P2P) is a process in SAP (Systems, Applications, and Products in Data Processing) that covers the complete procurement cycle, from the initial requisitioning of goods and services to the final payment and closure of the financial transactions. The P2P process in SAP involves various steps and modules to ensure a streamlined and efficient procurement process.
Here is an overview of the key steps in the Procure to Pay process in SAP:
- Requisitioning
- The process begins with the creation of a purchase requisition (PR) when a user identifies the need for goods or services.
- Vendor Selection
- Once the PR is created, the next step is to find and select a suitable vendor. This involves checking vendor master data and evaluating supplier performance.
- Purchase Order (PO) Creation
- Based on the vendor selection, a purchase order is created. The PO contains details such as the quantity, price, delivery date, and terms and conditions of the purchase.
- Goods Receipt (GR)
- When the goods or services are received, the receiving department records this in the system through a goods receipt. This step confirms that the goods have been received in the quantity and quality specified in the purchase order.
- Invoice Verification
- The next step is to verify the supplier’s invoice against the purchase order and goods receipt. This ensures that the invoiced amount matches the agreed-upon terms.
- Payment Processing
- After successful invoice verification, the system triggers the payment process. SAP supports various payment methods, including checks, electronic funds transfer (EFT), and automatic payment programs.
- Financial Accounting Integration
- The financial accounting module in SAP is integrated with the P2P process to ensure proper accounting treatment for the procurement transactions.
- Closing the Procurement Cycle
- Once the payment is made, the procurement cycle is closed. This involves updating relevant records, archiving documents, and completing necessary reporting.
In SAP, the Procure to Pay process is typically supported by multiple modules, including Materials Management (MM), Sales and Distribution (SD), and Finance (FI). These modules work together to provide an end-to-end solution for managing the procurement process within an organization.
It’s important to note that specific SAP configurations and processes may vary depending on the organization’s requirements and the SAP version being used.