2. Procure to Pay
1. DETERMINATION
OF REQUIREMENTS
9. PAYMENT
8. INVOICE
VERIFICATION
Procurement 2. SOURCE DETERMINATION
6. GOODS
RECEIPT
5. ORDER 3. VENDOR SELECTION
MONITORING 4. PO
PROCESSING
3. Accounts Payable
ïź Originates from the Purchase-to-Pay Cycle
Purchase Req Based on specific request or MRP run
Purchase Order Released to suppliers
Dr. Inventory/Asset XX
Goods Receipt Cr. GR-IR Clearing Account XX
Invoice Dr. GRIR Clearing Account XX
Verification Cr. Accounts Payable-Vendor XX
Accounts Payment Run
Payable
Dr. Accounts Payable-Vendor XX
Payment Cr. Cash In Bank XX
4. Determination of Requirements
ï¶Creation of Purchase Requisition
(Manual or MRP)
ï¶ History of changes in Purchase Requisition
(Change Log) item
ï¶ Purchase Requisition status
ï¶ Release (Approval) Strategy
5. Source Determination and Vendor Selection
ï¶ Request for Quotation (RFQ)
ï¶ Reference technique in RFQ
creation
ï¶ Price comparison of the quotations
6. Purchase Order Processing and Monitoring
ï¶ Reference technique in PO creation
ï¶ Pricing Condition
ï¶ History of changes in Purchase Order
(Change Log) header/item
ï¶ Purchase Order status
ï¶ Release (Approval) Strategy
ï¶ Tolerance limit set-up
7. Goods Receipt
ï¶ Goods Receipt with reference to
PO
ï¶ Material document and Accounting
document creation after posting
ï¶ Resulting to:
ïŒ Inventory update
ïŒ Update of G/L accounts
ïŒ Updates in the Purchase Order
ïŒ Update in Material cost (Moving
Average Price)
10. Payments (A/P)
ï¶ Dual control of master record
ï¶ Simultaneous updating of subsidiary ledger and
general ledger (minimize reconciliation activities)
ï¶ Instant access to details of account balances per
Vendor
ï¶ Drill down facility down to the original document
ï¶ Full audit trail
ï¶ Manual or automatic processing of payment
transactions
ï¶ Check information on payment transactions
11. Logistics Invoice Verification
ï¶ Creates Accounting Document for
referencing
ï¶ Provides 3-way matching (Purchase
Order against Goods Receipt and
the Vendor Invoice)
ï¶ It allows credit memos to be
processed, either as invoice
reversals or return deliveries.
12. Payments
âąPurchase
âąVendor âąOrder
âąReleased
âąinvoice âą? âą10 âąinvoice âąVendor âąBank
âą20 âąâąPayment
Payment âą1000
âą1000
âą30 âąâąprogram
program
âąâąInvoice
Invoice
âąâąverification
verification
âąBlocked
âąinvoice
Back to Procurement Process
13. Payments (A/P)
ï¶ Dual control of master record
ï¶ Simultaneous updating of subsidiary ledger and
general ledger (minimize reconciliation activities)
ï¶ Instant access to details of account balances per
Vendor
ï¶ Drill down facility down to the original document
ï¶ Full audit trail
ï¶ Manual or automatic processing of payment
transactions
ï¶ Check information on payment transactions
Hinweis der Redaktion
Personalized Settings Screen can be personalized by creating a folder and assigning your most commonly used transactions. With this, SAP makes your job faster and easier.
Dunning - The process of notifying vendors to ensure the resubmission of vendor declarations that are about to reach their expiration dates. Dunning procedures - A pre-defined procedure specifying how customers or vendors are dunned. For each procedure, the user defines Number of dunning levels Dunning frequency Amount limits Texts for the dunning notices