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Procure to pay ppt
- 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 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 Creation of Purchase Requisition (Manual or MRP) History of changes in Purchase Requisition (Change Log) item Purchase Requisition status Release (Approval) Strategy
- 5. Source Determination and Vendor Selection Request for Quotation (RFQ) Reference technique in RFQ creation Price comparison of the quotations
- 6. 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
- 7. Goods Receipt Goods Receipt with reference to PO 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 (Moving Average Price)
- 10. 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 per Vendor Drill down facility down to the original document Full audit trail Manual or automatic processing of payment transactions Check information on payment transactions
- 11. 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.
- 12. Payments Purchase Vendor Order Released invoice ? 10 invoice Vendor Bank 20 ≒Payment Payment 1000 1000 30 ≒program program ≒Invoice Invoice ≒verification verification Blocked invoice Back to Procurement Process
- 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 per Vendor Drill down facility down to the original document Full audit trail Manual or automatic processing of payment transactions Check information on payment transactions
Editor's Notes
- #3: 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.
- #4: 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