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p2p Cycle Sap

The Procure-to-Pay (P2P) process in SAP FICO encompasses procurement, invoice processing, and vendor payments, integrating with SAP MM and FI for efficient financial transactions. Key steps include creating a Purchase Requisition, converting it to a Purchase Order, recording Goods Receipt, verifying invoices, and processing payments. The process enhances automation, transparency, and compliance while ensuring accurate financial records.

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92 views4 pages

p2p Cycle Sap

The Procure-to-Pay (P2P) process in SAP FICO encompasses procurement, invoice processing, and vendor payments, integrating with SAP MM and FI for efficient financial transactions. Key steps include creating a Purchase Requisition, converting it to a Purchase Order, recording Goods Receipt, verifying invoices, and processing payments. The process enhances automation, transparency, and compliance while ensuring accurate financial records.

Uploaded by

kothapremkumarreddy
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 PDF, TXT or read online on Scribd
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🌟 End-to-End Procure-to-Pay (P2P) Process in

SAP FICO
The Procure-to-Pay (P2P) cycle in SAP FICO is a core financial process that covers procurement,
invoice processing, and payment to vendors. It seamlessly integrates with SAP MM (Material
Management) and SAP FI (Financial Accounting) to ensure smooth financial transactions and reporting.

🔥 Key Steps in the P2P Process in SAP FICO


1️⃣ Purchase Requisition (PR) – Requesting Goods/Services

●​ The process starts when a department requires goods or services.


●​ A Purchase Requisition (PR) is created in SAP.
●​ PR contains details like material, quantity, delivery date, and plant.

📌 T-Code: ME51N (Create PR)

2️⃣ Purchase Order (PO) – Placing the Order

●​ The purchasing team converts the PR into a Purchase Order (PO).


●​ A PO is a legal document issued to a vendor for supplying goods or services.
●​ It includes the terms, conditions, pricing, and delivery schedules.

📌 T-Code: ME21N (Create PO)


🚀 Key Integration: PO links with FI for commitments & MM for inventory updates.

3️⃣ Goods Receipt (GR) – Receiving the Items

●​ When the vendor delivers goods, the warehouse team records a Goods Receipt (GR).
●​ The system updates stock in SAP MM and posts accounting entries in SAP FI.

📌 T-Code: MIGO (Post Goods Receipt)


💡 Accounting Entries for GR:
Inventory Account (Dr)
GR/IR Clearing Account (Cr)
4️⃣ Invoice Verification – Processing the Vendor Invoice

●​ The vendor sends an invoice, which is verified against the PO and GR.
●​ If everything matches, the invoice is posted in SAP FI.

📌 T-Code: MIRO (Invoice Posting)


💡 Accounting Entries for Invoice Posting:
GR/IR Clearing Account (Dr)
Vendor Account (Cr)

✅ Three-Way Match Check​


SAP performs a 3-way match to ensure PO, GR, and Invoice align before payment.

5️⃣ Payment Processing – Paying the Vendor

●​ The Accounts Payable team processes the payment to the vendor.


●​ Payments can be made via checks, bank transfers, or electronic payments.
●​ Once the payment is made, it reflects in the bank account.

📌 T-Code: F-53 (Manual Payment)​


📌 T-Code: F110 (Automatic Payment Run)
💡 Accounting Entries for Payment Posting:
Vendor Account (Dr)
Bank Account (Cr)

🚀 SAP P2P Process Flow Diagram


1️⃣ Purchase Requisition (ME51N)
⬇
2️⃣ Purchase Order (ME21N)
⬇
3️⃣ Goods Receipt (MIGO)
⬇
4️⃣ Invoice Verification (MIRO)
⬇
5️⃣ Payment Processing (F110/F-53)
🎯 Key Benefits of SAP P2P Process
✅ Automation – Reduces manual errors and enhances efficiency.​
✅ Transparency – Ensures visibility of transactions from procurement to payment.​
✅ Integration – Seamlessly connects MM, FI, and AP modules.​
✅ Compliance – Helps in audit readiness and regulatory compliance.

🔥 Real-Time Business Scenario


Imagine a company XYZ Ltd. needs 50 laptops for its employees. Here’s how the SAP P2P process
works:

1️⃣ The IT team raises a Purchase Requisition (PR).​


2️⃣ The procurement team converts the PR into a Purchase Order (PO) and sends it to the vendor.​
3️⃣ The vendor delivers the laptops, and the warehouse team does a Goods Receipt (GR) in SAP.​
4️⃣ The vendor submits an invoice, and the accounts team posts it in SAP (MIRO).​
5️⃣ Finally, the finance team processes the payment and updates the bank records in SAP.

🎯 End Result: XYZ Ltd. successfully acquires the laptops, and financial records are updated seamlessly!

🔗 SAP Tables Used in P2P Process


SAP Table Description

EBAN Purchase Requisition Data

EKKO Purchase Order Header

EKPO Purchase Order Item Details

MSEG Material Document

BKPF Accounting Document Header

BSEG Accounting Document Line Items

RBKP Invoice Document


🌟 Conclusion
The P2P process in SAP FICO is a crucial financial workflow that ensures smooth procurement and
payment transactions. By leveraging SAP MM and SAP FI integration, companies can automate
processes, improve accuracy, and maintain strong financial controls.

🚀 Next Steps:
●​ Practice P2P transactions in SAP (Try T-Codes like ME21N, MIGO, MIRO, and F110).
●​ Understand integration points between MM & FI for better financial insights.
●​ Learn real-time scenarios and SAP Fiori apps for modern procurement.

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