Explain AP cycle and what is P2P cycle

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AP cycle is Accounts Payable cycle which involves processing of vendor invoices and making payments. P2P cycle is Procure to Pay cycle which involves procurement of goods and services and making payments.

AP cycle includes receiving invoices, verifying them, recording them in the system, and making payments to vendors.
P2P cycle includes identifying the need for goods or services, selecting vendors, creating purchase orders, receiving goods or services, verifying them, and making payments.
Both cycles are important for managing cash flow and maintaining good relationships with vendors.
Examples of AP cycle activities include invoice processing, vendor master data management, and payment processing.
Examples of P2P cycle activities include requisition management, purchase order creation, goods receipt and verification, and invoice verification.

Explain AP cycle and what is P2P cycle

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