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Author's profile photo Shorab Kumar Dilip Sharma

Purchase to Sales Process – SAP Finance in one Go


Business cycle – P2P & O2C is important for any FICO Consultant for better understanding of Client’s business.

Procure to Pay 

The procure to pay cycle is a process in which business inquire, request, receive and then pay for raw goods and services

Generating Purchase Requisition – ME51N

Making Inquiry – ME41

Purchase order Creation – ME21N

Release of Purchase order – ME28

Goods received from Vendor – MIGO (MM & FI Integration)

Raw Material Inventory a/c Dr  – (Transaction key BSX in OBYC )

GR/IR Clearing account a/c Cr – (Transaction key WRX in OBYC )

Goods Issued for Consumption (MM-FI-PP Integration)

Raw material Consumption a/c Dr 

Raw material Inventory account  a/c Cr 

Production receipt (MM-FI-PP Integration)

Finished goods Inventory a/c Dr 

Change in Stock a/c Cr 

Invoice Verification – MIRO

GR/IR Clearing account a/c Dr

Vendor a/c Cr

Payment to Vendor – F110 for Automatic payment & F-53 Manual payment

Vendor a/c Dr 

Bank a/c Cr

Order to Cash

Order to cash is a set of business processes that involve receiving and fulfilling customer requests for goods or services.

Inquiry from Customer – VA11

Sending Quotation – VA21

Sale order – VA01

Delivery of Finished goods – VL01N (SD-MM-FI Integration)

Change in Stock  a/c Dr  (Transaction key GBB in OBYC )

Finished goods Inventory a/c Cr ( Transaction key BSX in OBYC )

Customer Billing – VF01

Customer a/c Dr 

Sales a/c Cr  – (Account key ERL in VKOA )

Receipt of Payment – F-28

Cash/Bank a/c Dr 

Customer a/c Cr 

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      Author's profile photo Mohsin Abbasi
      Mohsin Abbasi

      Dear Shorab,

      Can you enlighten us about the tecode LM12, i have never ever been through this tecode, what is the purpose of this code in P2P, we are using ME41 for RFQ in ECC MM, Sourcing Module in Ariba.


      Best Regards

      Mohsin Abbasi