Article 9 - P2P Process

Article 9 - P2P Process


Article 9: What is the Procure-to-Pay (P2P) process?

What is Procure-to-Pay (P2P)?

Procure-to-Pay (P2P) is the complete business process that covers everything from identifying what you need to buy until you pay the supplier. It's the end-to-end purchasing cycle that ensures you get the right goods at the right time while controlling costs.

What does the P2P process include?

  1. Identify need - Determine what materials or services are required
  2. Create request - Submit purchase requisition
  3. Find supplier - Identify and select the best vendor
  4. Create purchase order - Formally order the goods/services
  5. Receive goods - Accept delivery and inspect quality
  6. Process invoice - Verify and approve supplier invoice
  7. Make payment - Pay the supplier

Which SAP modules are involved?

  • MM (Materials Management): Handles purchasing and inventory
  • FI (Financial Accounting): Manages invoicing and payments
  • PP (Production Planning): For manufacturing requirements
  • PS (Project System): For project-specific purchases

Why is an efficient P2P process important?

  • Timely availability of required goods and services
  • Cost control through proper approval workflows
  • Good supplier relationships through reliable processes
  • Compliance with company purchasing policies



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