Explain P2P Cycle? Explain PO and it's type?

Question

Accepted Answer

P2P Cycle is the process of procuring goods or services, from purchase requisition to payment.

P2P stands for Procure-to-Pay.
It involves several steps such as purchase requisition, purchase order, goods receipt, invoice verification, and payment.
The cycle starts with a purchase requisition, which is a request for goods or services.
Once approved, a purchase order (PO) is created, specifying the details of the purchase.
PO types include standard PO, blanket PO, and contract PO.
A standard PO is used for one-time purchases, while a blanket PO is for recurring purchases over a specific period.
A contract PO is used for long-term agreements with suppliers.
After receiving the goods or services, a goods receipt is created to confirm the delivery.
Invoice verification ensures that the invoice matches the PO and goods receipt.
Finally, payment is made to the supplier.
The P2P cycle ensures proper control and visibility over the procurement process.

Accepted Answer

P2p is the full cycle of actions and events that a business engages in when they requires goods and services from an outside supplier.

Accepted Answer

P2p is the full cycle of actions and events that a business engages in when they requires goods and services from an outside supplier.

Po is the set of key steps involved in processing purchase order.

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