Explain the P2P, R2R, finance operations process

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Accepted Answer

P2P, R2R, and finance operations processes are key components of a company's financial management.

P2P (Procure-to-Pay) involves the entire process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services.
R2R (Record-to-Report) encompasses all the activities from recording financial transactions to preparing financial statements.
Finance operations process includes tasks such as budgeting, forecasting, financial analysis, and compliance with regulations.
These processes are crucial for ensuring efficient financial management and accurate reporting.
Example: In P2P, a company receives a purchase requisition, selects a vendor, creates a purchase order, receives the goods, processes the invoice, and makes the payment.
Example: In R2R, financial transactions are recorded in the general ledger, reconciled, and used to prepare financial statements like the balance sheet and income statement.

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