This is a part of the Material Master business system and integrated with Finance business system.
It deals with procuring materials, services, different contracts associated with procurement.
The Procure to Pay starts from purchase requisition and ends with Payment to the Vendor.
What is Procurement?
The process of buying materials and obtaining services from vendors or dealers is called procurement.
The below mentioned steps are involved for this whole P2P cycle.
Need identified: This step involves the identification of the materials or services needed.
Requisition Management: Formal request is made for the goods and services and approval is taken.
Purchase Order issued: After taking all the required approval from the relevant management, a purchase order is issued to the supplier.
T- code: ME21N (Put all the necessary information)
Good receipt: The supplier delivers the requested goods or services, and the relevant goods or services receipt is created.
At this step FI-MM integration will come into picture and stocks will debit and GR/IR account will be credited.
T code MIGO: ( Put all the required information )
Invoice received: The supplier’s invoice is submitted and entered processing systems.
At this step again FI-MM integration will take care of the accounting document. GR/IR accounts will be debited, and vendor will be credited.
T code: MIRO (Fill all the required information)
Invoice processing – The invoice is either matched against the PO and the receiving documents or any exceptions are flagged for investigation.
Accounts Payable – Approved invoices are passed to accounts payable who make the payment and update the system.
