p2p operational flow with #SAP R/3

1.?Purchase Requisition (PR) Creation: T-code (ME51N)

·The Procure to pay process begins with the creation of a purchase requisition in SAP R/3. A purchase requisition is generated when an internal department identifies a need for certain goods or services.

2.?Purchase Requisition Approval:

·The purchase requisition may go through an approval process to ensure that the requested purchases comply with the company's policies and budget.

3. Purchase Order (PO) Creation: T-code (ME21N)

·?After the purchase requisition is approved, a purchase order is created in SAP R/3. The purchase order contains details such as the requested goods or services, quantities, delivery dates, pricing, and terms of payment.

4. Vendor Selection and Vendor Master Data:

· Based on the purchase order, the company selects an appropriate vendor or supplier to fulfill the order. The vendor's master data, including payment terms and delivery details, may need to be maintained in SAP R/3.

·?For vendor creation we have to use XK01 and for alteration/ modification in vendor data we have to use XK02 transaction code (as per requirement)

5. Purchase Order Approval & Transmission: T-code (It would be as per custom t-code)

·?After creation of PO with basis of PR, PO approval is require for bring a status “Release” in PO it is similar to maker and checker concept.

·The purchase order is sent to the chosen vendor, either electronically through SAP or via other communication methods like email, fax, or EDI (Electronic Data Interchange).

6.?Goods Receipt (GR) OR Entry Sheet : T-code (MIGO, ML81N)

·?Upon receiving the ordered goods from the vendor, the company performs a goods receipt in SAP R/3. This step involves recording the receipt of goods into the inventory and verifying the quantity and quality of the delivered items.

·?Along with this if the PO is pertaining to service then we need to create an entry sheet, after creation and choose appropriate service from SAP R/3

7.?Invoice Receipt (IR): T-code (MIRO)

·?After the goods / service are received and accepted, the vendor sends an invoice to the company for payment. The invoice is entered into SAP R/3, and a three-way match is performed between the purchase order, goods receipt, and invoice to ensure accuracy and validity.

8.?Invoice Verification and Approval: (SAP VIM)

·The accounts payable team verifies the invoice details and ensures that the prices, quantities, and terms match the purchase order and goods receipt. Once verified, the invoice goes through an approval process based on the company's internal controls.

·?For process of vendor invoice we can use Vendor Invoice Management (VIM) flow in SAP R/3 for automatic posting.

9.?Payment Processing: T-code (F110, F-53)

·?After the invoice is approved, the company proceeds with payment processing. The payment can be made via various methods, such as electronic funds transfer (EFT), checks, or other payment systems.

10.?Vendor Account Clearing: T-code (F-44, F.13)

·?Just after the payment cycle we have to clear payment line items with invoice booking line items also we can do this activity through automatic clearing.

11.?Reporting and Analysis: T-code (FBL1N, MIR5, J1IPUR)

·??Throughout the Procure to Pay process, various reports and analytics may be generated to track procurement performance, vendor performance, and other relevant metrics.

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