Tell about P2P cycle in details?

Question

Accepted Answer

P2P cycle is the process of procuring goods or services from a vendor and paying for them.

The cycle starts with creating a purchase requisition
The purchase requisition is then converted into a purchase order
Goods or services are received and inspected
Invoice is received and matched with the purchase order and goods receipt
Payment is made to the vendor
The cycle ends with closing the purchase order

Accepted Answer

P2P, is the full cycle of actions and events that a business engages in when they require goods or services from an outside supplier. This cycle describes the steps that a company must take to procure the items and pay the appropriate remittance to the supplier, less any discounts and adjustments.

Accepted Answer

Process to pay cycle is start with procurement and and end with payment to vendor.

First step is purchase requisition. PR is raised by user department by using transaction code ME51N and send  to the purchase department.

Second step in Request for quotation.
We are create RFQ with reference to PR by using transaction code ME41N once the RFQ is created then send to the vendor. We are maintain RFQ in transaction code ME47 and compare RFQ in transaction code ME49.

In transaction code ME49 we select one vendor. Against this vendor we create purchase order by using transaction code ME21N. Once the PO created then share to the vendor. Then vendor send the material to the company.

Company will receive material in MIGO transaction along this material vendor send bill , company also check bill and post in the form of invoice verification.

Then we verify the invoice in MIRO and share invoice documents to Finance department and finance department pay to vendor

Accepted Answer

It involves total of 8 steps
Step 1 - Determination of Requirements
Step 2- Determination of Source of supply
Step 3 - Selection of Vendor among several [RFx]
Step 4 - Creation of PO for the selected Vendor [ ME21N]
Step 5 - Monitoring PO
Step 6 - Creation of Good Receipt [ MIGO]
Step 7 - Creation of invoice document [ MIRO]
Step 8 - Payment to vendor

Accepted Answer

P2P is also know as procure to pay 1.Determinatination of resources 2.Determintion of source of supply 3.PR 4.RFQ 4a. Quotation 4b. Select vendor 5.PO 6.MIGO 7.MIRO

Accepted Answer

Procurement cycle it will start with requirement planning, the company has to plain requirement then they will requiest for quotation from vendor, Once vendor give quotation then they will validate and create PO to the vendor and then vendor the suppy goods us, then what happen invoice received from vendor will make payment to vendor for goods and services then will enter in system.

Accepted Answer

P2P Cycle is Purchase to payment process first stage is internal purchase requisition to notification purchase department to procure the material then purchase department send a Request for Quotation to the vendors and then vendors send a Quotation and purchaser campair quotation and select the best Quotation and then purchaser send a purchase order copy to the vendor and then vendor complete order and send to the material as per PO copy address and then plant stores department receive the material and check po copy and vendor invoice then store Incharge process a GRN Copy and send to the Required material department then material is ok he send the GRN Copy to Account department for vendor payment and Account department check INVOICE And GRN copy and then all ok Account department payment to the vendor

Accepted Answer

Procurement process can also be called as P2P cycle. It start with request and ends with payment to the vendor including order and goods receipt.there are 3phases of p2p cycle. 1.Purchasing 2.Inventory management and 3. Logistic Invoice Verification. In which purchasing phase contain purchase requisitions,Request for quotation, Maintain quotation, Purchase Order. Inventory management contain goods receipt and goods invoice. logistic invoice verification contain invoice verification.

Accepted Answer

Procurement process can also be called as P2P cycle. It start with request and ends with payment to the vendor including order and goods receipt.there are 3phases of p2p cycle. 1.Purchasing 2.Inventory management and 3. Logistic Invoice Verification. In which purchasing phase contain purchase requisitions,Request for quotation, Maintain quotation, Purchase Order. Inventory management contain goods receipt and goods invoice. logistic invoice verification contain invoice verification.

Accepted Answer

Procurement process can also be called as P2P cycle. It start with request and ends with payment to the vendor including order and goods receipt.there are 3phases of p2p cycle. 1.Purchasing 2.Inventory management and 3. Logistic Invoice Verification. In which purchasing phase contain purchase requisitions,Request for quotation, Maintain quotation, Purchase Order. Inventory management contain goods receipt and goods invoice. logistic invoice verification contain invoice verification.

Tell about P2P cycle in details?

Top TCS SAP MM Consultant interview questions & answers

Popular interview questions of SAP MM Consultant

Top HR questions asked in TCS SAP MM Consultant