Procure To Pay In SAP S/4 HANA | PTP SAP Fiori For Beginners

Procure-to-Pay Process in SAP S/4HANA

The Procure-to-Pay (P2P) process in SAP S/4HANA encompasses all activities involved in procuring goods and services and making payments to suppliers. It is a critical part of supply chain management, integrating various departments such as procurement, finance, and inventory.

Steps in the P2P Process

1. Purchase Requisition (PR)

   • Initiation of the procurement process by requesting materials or services.

   • Created manually by a user or automatically based on requirements (e.g., MRP).

2. Vendor Selection and Quotation Management

   • Vendor master data is accessed to identify potential suppliers.

   • Requests for Quotations (RFQs) are issued to vendors.

   • Quotations are compared, and the vendor is selected.

3. Purchase Order (PO) Creation

   • A formal document is created and sent to the vendor.

   • The PO contains details such as item quantity, delivery date, and price.

4. Goods Receipt (GR)

   • When goods or services are delivered, a Goods Receipt is posted in the system.

   • This updates inventory levels and records the receipt in the GR/IR (Goods Receipt/Invoice Receipt) account.

5. Invoice Verification

   • The vendor sends an invoice, which is matched with the PO and GR for verification.

   • The three-way match ensures accuracy and prevents discrepancies.

6. Payment Processing

   • Payment to the vendor is processed based on the verified invoice.

   • Payments are executed via SAP’s integrated financial systems, ensuring compliance with payment terms.

Key Features of P2P in SAP S/4HANA

• Fiori Apps: Intuitive user interface for procurement and invoice processing.

• Integration with Finance (FI): Real-time updates to accounts payable and other financial modules.

• Automation: Automated workflows for approvals and document management.

• Supplier Collaboration: Enhanced collaboration through Ariba Network integration.

• Advanced Analytics: Real-time insights into procurement and payment data.

Benefits of the P2P Process in SAP S/4HANA

• Increased Efficiency: Reduces manual effort with automation and streamlined workflows.

• Enhanced Accuracy: Minimizes errors through automated matching and validation.

• Cost Optimization: Improves spend visibility and helps negotiate better terms with suppliers.

• Compliance: Ensures adherence to corporate and regulatory standards.

• Real-Time Visibility: Provides up-to-date insights into procurement and payment statuses.

Course Contents :-

· Business Partner Role

. Business Partner Grouping and Number Range

· Master Data Synchronization

· Customer Vendor/Supplier Integration – CVI

· Customer and Vendor/Supplier Number. same as Business Partner Number

· Creation of Vendor/Supplier Account Groups

· Creation of Number Ranges for Vendor/Supplier Master Records

· Assignment of Number Ranges to Vendor/Supplier Account Groups

. Assign BP Grouping with Vendor/Supplier Account Groups

. Difference Between Internal and External Number Range Assignments

· Creation of Tolerance Group for Venders

. Create Business Partner

. Select Business Roles for BP

. Create GLs for Invoice Posting

. Create Reconciliation A/c

· Creation of Vendor Master (display/change/block/unblock of vender master)

. Create Purchase Invoice

. Post Outgoing Payment

· Posting of Vendor transactions (invoice posting, payment posting, credit memo)

. Partial Payment To Vendor

. Residual Payment To Vendor

. Difference B/w Partial and Residual Payment Method

. Create Bank Keys

. Create House Banks

. Create Bank Account/Account Ids with Fiori App

· Creation of Check Lots

. Create Check Register

· Display Check Register

· Cancellation of un-issued checks

· Creation of void reasons

· Cancellation of issued checks

· Settings for Advance Request (Down Payment Request)

. Settings For Advance Payments (Down Payment)

.  Noted items for accounts payable

.  Special GL Line Items

. Alternate Reconciliation A/c

. Special Reconciliation A/c

. Clearing Down Payment Line Items

·. Automatic Payment Program

. Run Automatic Payment Program on GUI & Fiori

. Maintain Parameters on Fiori

. Create Proposal on Fiori

. Create Payment Run on Fiori

. Print Payment Documents on Fiori

. Display Payment Documents on Fiori

· Creation of Terms of Payment

· Posting of purchase returns

· Defining Correspondence & party statement of accounts

After enrolling in the course, you will also receive an invitation to join my SAP FICO WhatsApp community, which has SAP professionals and freshers.

The community is an excellent platform to ask questions, discuss concepts, and get help with issues you encounter during SAP hands-on practice or while working on real-time projects. It also provides an opportunity to learn from the experiences of other members and stay connected with the SAP FICO community.

Disclaimer

This course is an independent training program and is not affiliated with, endorsed by, or authorized by SAP SE (formerly known as SAP AG).

All SAP-related product names, logos, and trademarks are the property of SAP SE.

Students are required to arrange their own SAP server access for hands-on practice.