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P2P Lifecycle:: Procuer To Pay Life Cycle

The procure to pay lifecycle involves 11 key steps: 1) defining procurement needs, 2) creating a requisition, 3) raising a request for quotation, 4) receiving quotes, 5) analyzing quotes, 6) issuing a purchase order, 7) receiving materials, 8) entering invoices, 9) processing payments, 10) transferring transactions to the general ledger, and 11) various approval levels to ensure matching of quantities between purchase orders, receipts, and invoices. Requisitions formally request items needed by an enterprise and are created by employees.

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178 views

P2P Lifecycle:: Procuer To Pay Life Cycle

The procure to pay lifecycle involves 11 key steps: 1) defining procurement needs, 2) creating a requisition, 3) raising a request for quotation, 4) receiving quotes, 5) analyzing quotes, 6) issuing a purchase order, 7) receiving materials, 8) entering invoices, 9) processing payments, 10) transferring transactions to the general ledger, and 11) various approval levels to ensure matching of quantities between purchase orders, receipts, and invoices. Requisitions formally request items needed by an enterprise and are created by employees.

Uploaded by

Suresh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Procuer To Pay Life Cycle

P2P LifeCycle:

The steps involved in Procure to Pay Cycle:

S.N Step Defined At


o
1 Define items Inventory
3 Requisition Purchase Order
4 Request For Quotation(RFQ) Purchase Order
raised
5 Quotation received Purchase Order
6 Quote analysis Purchase Order
7 Purchase order Purchase Order
8 Receive materials Inventory
9 Enter invoice Accounts payable
10 Payment process Accounts payable
11 Transfer to general ledger General ledger
Requisition:

Requisition is nothing but a formal request to buy something


(like Inventory material, office supplies etc) needed for the
Enterprise. Only an employee can create one.
Types of RFQ:
Types of Pos:
Types of Match Approval Level :
•Two–Way: Purchase order and invoice quantities must match
within tolerance before the corresponding invoice can be paid.
•Three–Way: Purchase order, receipt, and invoice quantities
must match within tolerance before the corresponding invoice
can be paid.
•Four–Way: Purchase order, receipt, accepted, and invoice
quantities must match within tolerance before the corresponding
invoice can be paid.
If you enter an item, the default value for this field comes from
the item information at the organization level. If not defined
there, the default comes from the item information at the master
level. If you do not enter an item, the default is from your
Purchasing Options.

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