P2P Process

P2P

Procure to Pay process which is also known as a P2P cycle is followed by any organization in any ERP system if they would like to purchase any products (it could raw materials, office supplies, infrastructure etc.). Of course, when there is a purchase there should be a payment.  This entire process of purchasing a product and making payment for that product to the supplier is called procure to pay process.

1. Requisition
2. Purchase Order
3. Receipt
4. Deliver

5. Invoice

6. Payment

7. Post to Journal

Create Requisition

Auto-Create Po

Purchase Order

India Tax Details

Approved PO

Create Receipt

Confirm Taxes on receipt

Delivery item In Inventory

Accounting of Receipt
                                      Receiving Inventory ac. Dr.
                                                              Inventory AP Accrual ac. Cr

Accounting of Delivery
                                       Inventory Material Valuation ac. Dr.
                                                                 Receiving Inventory ac. Cr

Invoice

Validation

Create Accounting

 Accounting of Invoices
                                           Inventory AP Accrual ac. Dr.
                                                                       Suppliers Liability Cr.

Payment

Create Accounting Of Payment

Accounting of Payment
                                                        Suppliers Liability Dr.
                                                                          Cash Clearing Ac Cr.

Import Journal In General Ledger

Post Journal In General ledger