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please tell about procure to pay(p2p) && order to cash (o2c)
cycle in sd module of abap(urgent)??
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Answer Posted / 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 |
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