Technical Articles
Purchase to Sales Process – SAP Finance in one Go
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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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