please tell about procure to pay(p2p) && order to cash (o2c)
cycle in sd module of abap(urgent)??
Answers were Sorted based on User's Feedback
Answer / priyanka
Hi ,
I can explain u procure to pay cycle.........
P2P cycle starts with
1)Requisition of an item
2)Request for Quotation
3)Quotation Analysis
4)Purchase order
5)Receipt\Invoice
6)Payments
7)Transfer to GL
Is This Answer Correct ? | 76 Yes | 7 No |
Answer / unknown
Procure to Pay - This process is related to buying material
from organizations supplier/vendors for day to day
operations.
requisition --> RFQ -->PO --> Receive --> pay
Eg - An automotive service center can buy spare parts from
its supplier (like toyota etc). To buy spare parts they
will look for all supplier who can provide spare parts.
This suppliers will give quotes and then the organization
will make a decision from which supplier they will buy
spare parts. Then a purchase order is genearte and supplier
will send required spares to organization. Upon receiving
spare the organization will match and recieive products in
their inventory. Once spares are received payments will be
made to supplier.
Order to Cash - This cycle is related to selling of
products and services to customers.
Customer --> Order --> Book --> schedule --> WO Completion
(optional) --> Pick release --> Ship cofirm --> AR
Eg - (i will continuue with automotive service center)
I take my car for repair to this automotive service center.
Since i need a service/products from this organization, i
become a customer for them. They will then take a look at
my car and suggest me service/products i need to buy. (all
that will become items which i am purchasing from them).
Upon completion of repair of my car i will get the invoice.
Once i get invoice from organization, i can make payments
against that.
Is This Answer Correct ? | 58 Yes | 9 No |
Answer / sam
Who is that vipin bhatia... What a hopeless answer...
Idiots........
Is This Answer Correct ? | 32 Yes | 3 No |
Answer / kiran
HI
Procure to pay(p2p) is of mm cycle.
Order to Cash(otc) is of SD
In order to cash the cycle is
Sales order - Delivary - Post goods issue - Billing processing
if u want detailed process mail me, ill send you.
Is This Answer Correct ? | 33 Yes | 12 No |
Answer / kavitha
P2P CYCLE IS NOTHING BUT PROCUREMENT TO PAY. IT CONTAINS 12
IMPORTANT POINTS.
1.Requisitor raise the requisition
2.Source is identified
3.vendor search
4.Request quotation is prepared
5.Analysis
6.Place Purchase Order
7.Vendor will send goods
8.Goods reieved by store keeper/requisitor
9.Goods verified or cross checked as per the order
10.After verification of goods Invoice is raised by the
vendor
11.Invoice is recieved by the Invoice dept.
12.Payment to Vendor
Is This Answer Correct ? | 19 Yes | 5 No |
Answer / prasanthi
procure to pay cycle
requisition made by employee
(requirements from different departments)
|
requisition for analysis
(searching for suppliers)
|
quotation
(receiving quotations from different suppliers)
|
quation for analysis
(based on price,quality,quantiy,service,deliver,payment mode)
|
purchase order
(after analysis we need to send our purchase order to supplier)
|
receipt
(receive goods against purchase order & cross check according to po)
|
invioce
(receive invoice for received goods)
|
payment
(payment made to supplier for received goods)
Is This Answer Correct ? | 12 Yes | 1 No |
Answer / raj
In simple words..
Procure to pay is nothing but accounts payable
Order to cash is nothing but accounts receivable.
We pay when we buy.
We get when we sell.
In detail, u need to go through each cycles
Is This Answer Correct ? | 20 Yes | 14 No |
Answer / mahesh
Procure to Pay (P2P)
The Accounts Payable / Procure to Pay (P2P) overall process covers the complete cycle from Vendor Master Maintenance through procurement and Vendor Invoice Processing, the resulting Payment Processing to external vendors and the Period Closing Activities. All processes are accompanied by comprehensive and mature monitoring to accomplish Sarbanes-Oxley Act (SOX) Compliance.
In an Order-to-Cash (OTC) process, everything that leads from the order, packaging, delivery to having the actual money in the bank is included.
Process Flow
Sales Quotation
Standard Order
Shipping
Delivery
Picking
Posting Goods Issue
Warehouse Picking Execution
Packing
Posting Goods Issue
Billing
Payment of Customer
Is This Answer Correct ? | 3 Yes | 0 No |
Answer / khoken
P2P means "Procure to pay" (MM)
Procure the material from Vendor and End with cash paid to the Vendor
Purchase Order => Delivery => Goods Receipt => Invoice Receipt => Payment.
O2C means "Order to Cash" (SD)
It is the Process which giving sales order to customer and end with the receiving cash from Customers.
Sales Order => Delivery => Goods Issue => Billing Document(Tx Inv,Sales Inv) => Receive Payment.
More Details Follow the Site:
1 ) http://www.slideshare.net/gsriramsunil/o2-c-and-p2p-cycles.
Is This Answer Correct ? | 3 Yes | 0 No |
Answer / anji
Answer / Anji
Hi..
P2P Cycle
Requisition --> Request for quotations --> Quotations --> Quotation Analysis --> Purchase Order --> Receiving --> Invoice --> Payment --> Clearing --> Reconcile --> Transfer to GL
Is This Answer Correct ? | 1 Yes | 0 No |
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