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Process To Pay and Procure To Pay (P2P Cycle) 1000A 10 1000 (BOM) 10000

The document describes the process to pay (P2P) cycle. It involves a customer requesting a product from sales and distribution which is then planned and manufactured. Procurement requests materials and sends RFQs to suppliers. A PO is issued to the selected supplier. Upon delivery, goods are checked for quality and quantity before a GRN is issued. A three-way match of PO, GRN and invoice is done before payment is made to the supplier. The material requirement is calculated based on the BOM and current inventory levels.

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MATEEN ANOORI
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62 views

Process To Pay and Procure To Pay (P2P Cycle) 1000A 10 1000 (BOM) 10000

The document describes the process to pay (P2P) cycle. It involves a customer requesting a product from sales and distribution which is then planned and manufactured. Procurement requests materials and sends RFQs to suppliers. A PO is issued to the selected supplier. Upon delivery, goods are checked for quality and quantity before a GRN is issued. A three-way match of PO, GRN and invoice is done before payment is made to the supplier. The material requirement is calculated based on the BOM and current inventory levels.

Uploaded by

MATEEN ANOORI
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Process to pay and Procure to Pay (P2P cycle) 1000A= 10*1000(BOM) =10000

Company

Customer
DC
50 Sales &
Distribution

Procurement
a PR1 and PR2
Manufacturing te Planning

Warehouse Purchase Request (PR)

Request for Quotation


(RFQ) 3days local 1w

Purchase Order (PO)

Goods Receipt Note


(GRN)

Invoice

Payment to the vendor

Req : Steel Sheets

Qty: 1000

Specifications: 2.75 mm thickness 10.25*10.25 mm and DT: 1month


1. PO vs Delivery receipt

2. Qty

3. Quality

The above flow chart shows the Process to Pay cycle, when a customer approaches S&D
with demand (Product) the S&D will coordinate with the planning team for the feasibility
check nothing but the manufacturability of the product within the production capacity.

If the company is able to manufacture the demanded product then the planning team will
plan for the material requirement in coordination with the manufacturing team during this the
current status will be checked with the warehouse.

The purchase request is raised by the stake holder (User department) for the required
materials, purchase person will analyse the PR (Part No, Part Description, specification,
delivery Time etc...) and RFQ is created to send it to different potential suppliers to obtain
the quotations and comparative study is made to get the materials at right price (Negotiation).

By doing the negotiation buyer will finalise the vendor and Purchase order is released to
that particular vendor and follow up of the ordered material need to be carried out.

Once the material is delivered quantity and Quality check of the material is made by
verifying PO Vs Delivery invoice

Case I: Quality Accepted- GRN

Case II: Quality rejected – Incoming Rejection (IR)

Case III: material on Hold - RTV


Three ways Match Technique:

PO 100

GRN 100 Invoice 95

The payment to the vendor will be processed after the three way match of Purchase order
(PO), Goods receipt note and invoice is made and payment will done as per the designated
days.

Product 1 A= 10 ROH

1000*10=10000ROH

1000-50(DC) =950*10= 9500

9500-200(warehouse) = 9300 ROH required

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