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    Process To Pay and Procure To Pay (P2P Cycle) 1000A 10 1000 (BOM) 10000

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    MATEEN ANOORI
    The document describes the process to pay (P2P) cycle. It involves a customer requesting a product from sales and distribution which is then planned and manufactured. Procurement requests materials and sends RFQs to suppliers. A PO is issued to the selected supplier. Upon delivery, goods are checked for quality and quantity before a GRN is issued. A three-way match of PO, GRN and invoice is done before payment is made to the supplier. The material requirement is calculated based on the BOM and current inventory levels.

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    Process To Pay and Procure To Pay (P2P Cycle) 1000A 10 1000 (BOM) 10000

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    MATEEN ANOORI
    23 views3 pages
    The document describes the process to pay (P2P) cycle. It involves a customer requesting a product from sales and distribution which is then planned and manufactured. Procurement requests materials and sends RFQs to suppliers. A PO is issued to the selected supplier. Upon delivery, goods are checked for quality and quantity before a GRN is issued. A three-way match of PO, GRN and invoice is done before payment is made to the supplier. The material requirement is calculated based on the BOM and current inventory levels.

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    Process to Pay

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    The document describes the process to pay (P2P) cycle. It involves a customer requesting a product from sales and distribution which is then planned and manufactured. Procurement requests materials and sends RFQs to suppliers. A PO is issued to the selected supplier. Upon delivery, goods are checked for quality and quantity before a GRN is issued. A three-way match of PO, GRN and invoice is done before payment is made to the supplier. The material requirement is calculated based on the BOM and current inventory levels.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    23 views3 pages

    Process To Pay and Procure To Pay (P2P Cycle) 1000A 10 1000 (BOM) 10000

    Uploaded by

    MATEEN ANOORI
    The document describes the process to pay (P2P) cycle. It involves a customer requesting a product from sales and distribution which is then planned and manufactured. Procurement requests materials and sends RFQs to suppliers. A PO is issued to the selected supplier. Upon delivery, goods are checked for quality and quantity before a GRN is issued. A three-way match of PO, GRN and invoice is done before payment is made to the supplier. The material requirement is calculated based on the BOM and current inventory levels.

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    Download as docx, pdf, or txt
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    Process to pay and Procure to Pay (P2P cycle) 1000A= 10*1000(BOM) =10000

    Company

    Customer
    DC
    50 Sales &
    Distribution

    Procurement
    a PR1 and PR2
    Manufacturing te Planning

    Warehouse Purchase Request (PR)

    Request for Quotation


    (RFQ) 3days local 1w

    Purchase Order (PO)

    Goods Receipt Note


    (GRN)

    Invoice

    Payment to the vendor

    Req : Steel Sheets

    Qty: 1000

    Specifications: 2.75 mm thickness 10.25*10.25 mm and DT: 1month


    1. PO vs Delivery receipt

    2. Qty

    3. Quality

    The above flow chart shows the Process to Pay cycle, when a customer approaches S&D
    with demand (Product) the S&D will coordinate with the planning team for the feasibility
    check nothing but the manufacturability of the product within the production capacity.

    If the company is able to manufacture the demanded product then the planning team will
    plan for the material requirement in coordination with the manufacturing team during this the
    current status will be checked with the warehouse.

    The purchase request is raised by the stake holder (User department) for the required
    materials, purchase person will analyse the PR (Part No, Part Description, specification,
    delivery Time etc...) and RFQ is created to send it to different potential suppliers to obtain
    the quotations and comparative study is made to get the materials at right price (Negotiation).

    By doing the negotiation buyer will finalise the vendor and Purchase order is released to
    that particular vendor and follow up of the ordered material need to be carried out.

    Once the material is delivered quantity and Quality check of the material is made by
    verifying PO Vs Delivery invoice

    Case I: Quality Accepted- GRN

    Case II: Quality rejected – Incoming Rejection (IR)

    Case III: material on Hold - RTV


    Three ways Match Technique:

    PO 100

    GRN 100 Invoice 95

    The payment to the vendor will be processed after the three way match of Purchase order
    (PO), Goods receipt note and invoice is made and payment will done as per the designated
    days.

    Product 1 A= 10 ROH

    1000*10=10000ROH

    1000-50(DC) =950*10= 9500

    9500-200(warehouse) = 9300 ROH required

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