The Procure to Pay (P2P) process is a comprehensive business workflow that covers all steps from identifying the need for goods and services to making the final payment to suppliers.
This process is essential for organizations as it ensures efficiency and accuracy in purchasing and procurement activities.
Step-by-Step Overview of the P2P Process
The P2P process typically begins with the identification of requirements, where a department or user recognizes a need and documents it in a purchase requisition (PR).
Following this, the PR is created using the SAP T-code ME51N.
This document specifies details such as items, quantities, and delivery dates.
Once the requisition is submitted, it goes through an approval workflow, usually needing authorization from a manager or budget owner.
After approval through SAP T-code ME54N, the PR is converted into a Purchase Order (PO) using T-code ME21N.
The PO is then sent to the vendor for acceptance, initiating the procurement phase.
Finalizing the P2P Process
Upon delivery of goods or services, the organization inspects the items and generates a Goods Receipt Note (GRN) via T-code MIGO.
The next step involves receiving the supplier invoice, which must reference both the PO and the GRN for verification. This is tracked using T-code MIRO.
Finally, payment to the vendor is processed according to the agreed terms—whether via cheque, NEFT, or RTGS—using T-codes F-53 for manual payments or F110 for automatic payments.
Understanding the Procure to Pay process is crucial for maintaining efficient supplier relationships and ensuring timely payments.
