Procurement to Pay Cycle in SAP

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sap fan
Jun 28, 2007 12:55 PM

How do we map PROCUREMENT TO PAY in SAP?

Thanks

Correct Answer by Charuni Karavati on Jul 3, 2007 5:08 PM

MM

ME51/ME51N - Create Purchase Requisition - Which when authorized becomes a PO

ME21/ME21N - Create Purchase Order

MIGO - When Goods are received - Dr Inventory A/C, Cr GR/IR A/C

MIRO - When Invoice is received - At this stage, both accounting and material documents are created

Dr - GR/IR A/C, Cr - Vendor A/C

FBZP - Payment Configuration

F110 - Payment Run

When a payment is made - it Dr the Vendor A/C and Credits the Bank A/C.

Hope that helps..

Thanks,

Nandita
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Helpful Answer by Charuni Karavati

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Re: Procurement to Pay Cycle in SAP

Karthik Tharkabhushanam Jun 28, 2007 1:01 PM (in response to sap fan)

Hi,

- http://blogs.ittoolbox.com/sap/kehinde/archives/the-procure-to-pay-cycle-10574

same process applies to SAP R/3 or ECC.

- http://www50.sap.com/businessmaps/3E2D2915149F48889859F93E3E46C7A8.htm

Rgds.

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Helpful AnswerRe: Procurement to Pay Cycle in SAP
 Charuni Karavati Jun 28, 2007 9:49 PM (in response to sap fan)

It's the whole of AP process - which includes MM( Procurement), MM-FI Integration and FI ( Pay).

Just as an Overview :

A Purchase requisition is first received - which when approved by mgr, becomes a Purchase Order and then
When Goods are received, transactions happen at both MM and FI end after which the Invoice is received and
the payment made according to the payment terms of the vendor.

Hope that helps.

Thanks,

Nandita

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sap fan Jun 29, 2007 6:24 AM (in response to Charuni Karavati)

Please state the areas that are being hit in SAP in this cycle of Procurement to Pay, along with their T-codes
....

Rgds

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Correct AnswerRe: Procurement to Pay Cycle in SAP
Charuni Karavati Jul 3, 2007 5:08 PM (in response to sap fan)

MM

ME51/ME51N - Create Purchase Requisition - Which when authorized becomes a PO

ME21/ME21N - Create Purchase Order

MIGO - When Goods are received - Dr Inventory A/C, Cr GR/IR A/C

MIRO - When Invoice is received - At this stage, both accounting and material documents are created

Dr - GR/IR A/C, Cr - Vendor A/C

FBZP - Payment Configuration

F110 - Payment Run

When a payment is made - it Dr the Vendor A/C and Credits the Bank A/C.

Hope that helps..

Thanks,

Nandita

Assign Points if helpful

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Re: Procurement to Pay Cycle in SAP

Sridevi B Nov 5, 2013 11:12 AM (in response to sap fan)

Procure to pay is the process of obtaining and managing the

raw materials needed for manufacturing a product or providing a service. It
involves the transactional flow of data that is sent to a supplier as well as
the data that surrounds the fulfillment of the actual order and payment for the
product or service.

A. Procure to Pay Business Process Steps

1. Create Purchase Requisition - ME51 (Fields: Material/Plant/Quantity/Storage

Location)

2. Create Purchase Order - ME21N. (Purchasing org/ Purchasing group/ Company

Code/ Payment Terms/ Vendor/ Currency /Material/ Quantity/ Plant/ Inco terms/
Net Price/ Tax code/ Storage Location)

3. Goods receipt Purchase order MIGO (Enter PO No:/ Goods receipt Purchase
order - screen will display/save/ Material document posted will display)

4. Enter Invoice MIRO (Company Code/ Invoice date/ Reference-PO/ Amount/

Baseline Dt.)

5. Evaluated Receipt Settlement (ERS) with Logistics Invoice Verification

MRRL (Company code/ Plant/ Goods receipt document/ Fiscal year, goods
receipt/Vendor/ Purchasing Document)

6. Automatic Clearing without Definition of Clearing Currency F.13 (Company

code/ Fiscal year/ Document number/ Posting date/ Check Select vendors)

7. Automatic Clearing with Definition of Clearing Currency - F13E (same as

above)

8. Clear G/L Account F-03 (Account/ Company code/ Currency/ Select the
required document- enter Pstky, Account, Amount, Profit center)

9. Automatic Payment - F110 (parameter tab - Posting date/ Document date/

Company code/ Payment method/ next payment date/ Vendor)