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