Hello Guys, today's post is all about the business process of the SAP MM Module. We inform here that we explain all the steps of SAP MM P2P Process (Procure To Pay) procedures in a very easy way. With the help of these, you can easily understand the business scenarios of the SAP MM Module.
What is SAP MM P2P Process ?
Requisitioning, purchase order formation, goods receipt, invoice verification, payment processing, vendor evaluation, and reporting are all part of SAP's Procure-to-Pay (P2P) process. It guarantees effective vendor management, cost control, transparency, and procurement.
Note:
1. FI+MM Integration
2. Unit Testing
3. Integration Testing
 |
| $Latest$ SAP MM P2P Business Procedures | Procurement To Payment Wikis Full Details |
SAP MM P2P Process Business Overview | Procument To Payment (Account Payable)
|
Business Process |
T-Code |
User Team |
|
1. PR- Purchase
Requisition |
ME51N |
MM User –Purchase Dept. |
|
2. RFQ- Request for
Quotation |
ME41 |
MM User –Purchase Dept. |
|
3. Maintain Quotation |
ME47 |
MM User –Purchase Dept. |
|
4. Price Comparison
/Vendor Selection |
ME49 |
MM User –Purchase Dept. |
|
5. PO-Purchase Order |
ME21N |
MM User –Purchase Dept. |
|
6. MIGO- Goods Receipt
(GR) |
MIGO |
MM User-Store Dept. |
|
7. MIRO- Invoice Receipt
(IR) |
MIRO |
MM User-Store Dept./Accounts Dept. |
|
8. Vendor Payment |
F-53/F110 |
FI-Accounts Payable User |
1. PR- Purchase Requisition
- A purchase request is called a PR.
- PR is produced for the purchase of goods, services, and assets.
- Production, cost centers, and any department can raise PR.
- Purchase item selection is made in PR
- The retail department brings up PR with the purchasing department.
2. RFQ- Request for Quotation
Ø RFQ is send to vendors by mail/Call
Ø Purchasing item is mention in RFQ
3. Maintain Quotation
Ø Maintain quotation send by vendors
Ø Item price (Invoice price, Discount, freight charges, Input tax/Input GST)
Ø Payment Terms
Ø Delivery Date
4. Price Comparison and Vendor Selection
Ø Price Comparison
Ø Include
Discounts
Ø Include Delivery
Cost
Ø Determine effective price
5. PO-Purchase Order
Ø Master
Data- Material, Vendor, condition
Records (Price)
Ø Create PO,
Check PO, Funds Approval of PO
Ø 4 Copy of
PO (Vendor, Purchase Dept., Accounts, Store Dept.)
Ø Raised PO
to Vendor (by mail)
Ø No accounting entry is posted in PO
Ø Performa Invoice is send by vendor
Ø Down
payment can be made against PO,
Performa Invoice, contract
Ø F-48 Down payment & F-54 clear down payment (FI-AP)
6. MIGO- Goods Receipt (GR)
Ø FI+MM
Integration
Ø Goods
Receipt is done by Store
department against PO
Ø MM to FI Posting automatically
Material A/c Dr. 10,000
To GR/IR Clearing Cr. 10,000-
Freight Charges A/c Dr. 500
To Cash Cr. 500-
Note:
Ø Movement Type -101
Ø Material account
is debit or credit by movement type
Ø MIGO is a T. Code for GR
7. MIRO- Invoice Receipt (IR)
Ø FI+MM
Integration
Ø Logistic Invoice Verification is done by
Store/Accounts Dept. (Check vendor Bill)
Ø 3 way match
(PO-GR-IR)
Ø 2 way match
(GR-IR)
Ø 4 Way match
(PO-GR-QC-IR)
Ø MM to FI Posting automatically
GR/IR Clearing A/c Dr. 10,000
Input GST Dr. 1,000
To Vendor Cr. 11,000-
Note:
Ø PO Invoice is Processed by MM User (MIRO)
Ø Non-PO Invoice is processed by FI user (FB60)
Ø Vendor
account is credited and open item is
created
Ø MIRO is a T. Code for IR
8. Vendor Payment
Ø Vendor
payment is done by FI-Accounts
Payable User
Ø FI Posting (F-53 manual payment and F110-APP Run)
Vendor Dr. 11,000
To SBI-Check Outgoing A/c Cr. 11,000-
Note:
Ø 3 types of
payment (Standard, partial and residual)
Ø Clear partial payment (F-44)
Ø SBI-Check Outgoing A/c (Bank Sub-account) is a bank clearing account.
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