8/13/2019 procure 01
1/13
PROCURE TO PAY
8/13/2019 procure 01
2/13
Procure to Pay
Procurement
1. DETERMINATION
OF REQUIREMENTS
2. SOURCE DETERMINATION
4. PO
PROCESSING
6. GOODS
RECEIPT
8. INVOICE
VERIFICATION
9. PAYMENT
5. ORDERMONITORING
3. VENDOR SELECTION
8/13/2019 procure 01
3/13
Accounts Payable
Originates from the Purchase-to-Pay Cycle
Purchase Req
Purchase Order
Goods Receipt
Invoice
Verification
Accounts
Payable
Payment
Based on specific request or MRP run
Released to suppliers
Dr. Inventory/Asset XX
Cr. GR-IR Clearing Account XX
Dr. GRIR Clearing Account XX
Cr. Accounts Payable-Vendor XX
Payment Run
Dr. Accounts Payable-Vendor XX
Cr. Cash In Bank XX
8/13/2019 procure 01
4/13
Determination of Requirements
Creation of Purchase Requisition
(Manual or MRP)
History of changes in Purchase Requisition(Change Log) item
Purchase Requisition status
Release (Approval) Strategy
8/13/2019 procure 01
5/13
Request for Quotation (RFQ)
Reference technique in RFQ
creation
Price comparison of the quotations
Source Determination and Vendor Selection
8/13/2019 procure 01
6/13
Purchase Order Processing and Monitoring
Reference technique in PO creation
Pricing Condition
History of changes in Purchase Order
(Change Log) header/item
Purchase Order status Release (Approval) Strategy
Tolerance limit set-up
8/13/2019 procure 01
7/13
Goods Receipt with reference toPO
Material document and Accounting
document creation after posting
Resulting to: Inventory update
Update of G/L accounts
Updates in the Purchase Order
Update in Material cost (MovingAverage Price)
Goods Receipt
8/13/2019 procure 01
8/13
SAP Three-Step Verification
8/13/2019 procure 01
9/13
Logistics Invoice Verification
Creates Accounting Document for
referencing
Provides 3-way matching (Purchase
Order against Goods Receipt and
the Vendor Invoice)
It allows credit memos to be
processed, either as invoice
reversals or return deliveries.
8/13/2019 procure 01
10/13
Payments (A/P)
Dual control of master record
Simultaneous updating of subsidiary ledger and
general ledger (minimize reconciliation activities)
Instant access to details of account balances perVendor
Drill down facility down to the original document
Full audit trail
Manual or automatic processing of paymenttransactions
Check information on payment transactions
8/13/2019 procure 01
11/13
Logistics Invoice Verification
Creates Accounting Document for
referencing
Provides 3-way matching (Purchase
Order against Goods Receipt and
the Vendor Invoice)
It allows credit memos to be
processed, either as invoice
reversals or return deliveries.
8/13/2019 procure 01
12/13
Released
invoice1000 Payment
programPaymentprogramBank
1000Vendor
Vendor
invoice?
PurchaseOrder
102030
Invoice
verificationInvoice
verificationBlockedinvoice
Payments
Back to Procurem ent Process
8/13/2019 procure 01
13/13
Payments (A/P)
Dual control of master record
Simultaneous updating of subsidiary ledger and
general ledger (minimize reconciliation activities)
Instant access to details of account balances perVendor
Drill down facility down to the original document
Full audit trail
Manual or automatic processing of paymenttransactions
Check information on payment transactions
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