Digitizing your procure-to-pay process empowers stronger compliance and control across vendors, contracts, regulations, buyers, and accounts payable.
Enterprises are driven by two fundamental business processes: buying and selling. These pivotal operations encompass the sale of products or services, both of which necessitate the acquisition of various materials and resources.
As a result, the two cornerstone departments of any enterprise are Sales and Procurement. Here’s a series of well-defined steps that initiate the act of procurement and culminate in the final payment. This comprehensive sequence involves procuring the necessary products or services from suppliers or vendors and fulfilling the financial obligations associated with these transactions.
This integral procedure is commonly called “Procure to Pay” or PTP. SAP, a prominent provider of Enterprise Resource Planning (ERP) solutions, has designed the SAP MM Module (Material Management) specifically to streamline and manage the procure-to-pay process. While the actual implementation of SAP implementation services may vary based on an enterprise’s unique business model and need, we will be delving into the standardized SAP procure-to-pay process.
Step 1: Identifying the Requirement
Step 2: Decision of Procurement
Step 3: Request for Quotation
Step 4: Selection of Quotation
Step 5: Making of Agreement
Step 6: Purchase Order
Step 7: Advance Shipping Notice
Step 8: Goods Receipt
Step 9: Invoice Verification
Step 10: Payment
To read the detailed blog visit How to Optimize Your SAP Material Management Procure-to-Pay Process