Details process related to Procurement, Source finalisation, approval, Receipt and Payment

1. Kajal Kumar Singh
kajalkumarsingh@rediffmail.com
Procurement to Pay (P2P)
Process

2. Index
• Overview
• Purchase requisition
• Source finalisation
• Approval and Purchase Order
• Receipt and Payment

3. Purchase
Requisition
Purchase
Order
Payment
P2P Overview What
people
thing

4. Purchase Requisitions (PR)
Creation
•PR to be placed after checking
availability of similar material at
other divisions/own division/store.
• Material/Service descriptions and
specification to be provided in details
• Detailed justification for item
requisition to be entered by the user
while creating PR
• Estimate price to be provided in PR.
Approval
•Verifies Material Code, Valuation Class
and Cost Center to be checked for
service PR.
• Validation of budget with the
concerned department
•Approve as per SOA/ Policy, based on
Value of PR.

5. Vendor Selection
RFQ
• Request for Quotations
• open/Close Bidding
Evaluation
• CFT ((Procurement, User, F&A, Others)
• Technical and Commercial evaluation
• Vendor Negotiations & Finalization
Order Approval
• Prepare OAF as per agreed T&C
• Provide Budget Status
• Approval as per SOA
PO Creation & Approval
• PO to be created in SAP as per the T&C
of the OAF and Management comments
• Check GST Rate, HSN Code, etc.
• Approval as per SOP in SAP
Monitoring of PO
• Advance Payment, if any
• Follow up for delivery, Inspection at site
Purchase Order
Vendor Selection, OAF and PO

6. Goods Receipt
• Security Checking & Stamp
• Receipt as per PO T&C
• GRN Creation for Material
• SES Creation & Approval for Service
Good Receipt
• Quality Checked by User
• Purchase Return, if any
Quality Verification
• Scan Invoice in System
• Approval as per Policy
Invoice Processing
• Check LD applicability, BG, Retention,
Advance adjustment, etc as per PO
• TDS Deduction, if any
• Maker checker Concept
Invoice Verification
• As per Due Date
• Approval by Signatories
Payment Processing
Payment
Goods Receipt, Invoice Verification and Payment

7. 1. PURCHASE
REQUISION
2. SOURCE
DETERMINATION
4. PO
PROCESSING
6. GOODS RECEIPT
7. INVOICE VERIFICATION
8. PAYMENT
5. ORDER
MONITORING
3. VENDOR SELECTION
P2P Details Overview
Source: Internet