Introduction
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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