SAP Procure to Pay Process(P2P)Different Scenarios-Part-2
In this document, I would like to explain the different scenarios in the procurement process. The procurement process starts from purchase requisition and ends with payment to the vendor. Hence this process is popular with the word ‘P2P’ Process. It deals with procuring materials, services, different contracts associated with procurement. I have explained few popular scenarios. It is a 3-way matching rule (PO-GR-IV). We will understand the master data activities like the material master, purchase Info record, source list, and transaction activities like purchase requisition, purchase order, Goods Receipt, and Invoice posting.
This document is a continuation of my previous blog post. In my previous blog post, I have explained 1st and 2nd scenarios (Standard purchase order and Capex purchase order). In this blog post, I will show the 3, 4, and 5 Scenarios (Consumption Purchase Order, Stock PO with the Price difference, and Service-Related PO with price differences). I will post the remaining scenarios in my future blog post.
You can find my previous blog post information below.
The below table gives a high-level overview of different scenarios.
Note: The below 10 scenarios screenshot will be best visible in the desktop version.
Movement Types and Transaction Keys With the combination of Movement Types and Transaction Keys, the system will determine the GL accounts. The configuration should be maintained in the ‘T.Code-OBYC’ Settings.
3. Consumption Purchase Order
3.1 Purchase Order creation- T-Code-ME21N
Enter the information in the line item level like Account Assignment – K(Cost Center), Material code, Quantity, Unit of measure, Delivery date, Net-price, Currency, Material group, Plant and Storage location. Enter the required information in the below screen and click on enter.
In the below screen, Under the ‘Account Assignment’ tab enter the correct GL account and Cost Center.
Enter and Save.
3.2 Goods receipt – MIGO
Enter the Purchase order number against the Goods Receipt and click enter
In the below screen, Enter the quantity in the delivery note and select the item OK check box if everything looks good, and then save it. The system has generated the Accounting document.
The values will NOT go to the inventory/stock GL account. It will be consumed directed and hit the P&L GL Account-Consumption account.
3.3 Invoice receipt – MIRO
In the below screen, enter the Invoice amount then click on simulate to verify the accounting document
Display Accounting documents
From the Menu- Invoice document-Display, Click on Follow-on-documents, then double click on Accounting document
3.4 Verify Material Report – MB5B
Note: You can not see the Consumption related stocks information in the Material Report(MB5B).
4. Stock PO with Price Differences
User-created a purchase order for the value of 10,000 rupees (100 Qty, 100 rupees each quantity). The business has agreed to pay the market rates. The vendor has sent a bill for 12000 rupees. Basically, the price is increased by 20 rupees for each quantity.
- If the stock is fully available, then the difference amount goes to the stock/ material account.
- If the stock is fully consumed, the difference amount or price goes to the price difference account.
- If the stock is partially consumed, like if you have a total of 100 quantities of stock, and you have consumed 40 quantities of stock. So in this case you have 60 quantity of stock is available. in this process, the system will transfer the 60 quantity of stock amount to the stock/Inventory account and 40 quantity of stock amount (or consumed stock) to the price difference account.
4.1 Purchase Order creation-ME21N
4.2 Goods Receipt-MIGO
4.3 Stock Issue to the Cost Center-MB1A
4.4 Verify Material Report-MB5B
4.5 Invoice Receipt-MIRO
While creating a Purchase Order the price is 10000 Rupees for 100 quantity of stock, but at the time of invoice, the price has been increased to 12000 Rupees for 100 quantity of stock. In the below step, we are doing an Invoice for 12000 rupees.
Here System transferred the difference amount to the Stock/Inventory account. Because the stock is fully available in this case. If you want to verify the stock available or not, you can use the T-Code- MB5B.
5. Service-Related Purchase Order and Price differences scenario
We popularly call it a service order or work order. It is mainly used for services. Companies may create service codes if required. However, the service codes are not mandatory. In the case of services, we do not use the valuation class for determining SR/IR Clearing GL account. We will keep the valuation class blank in the OBYC settings.
5.1 Creation of Purchase Order-ME21N
Select/Enter the Vendor number against to PO, and click on Enter
Enter Header fields Information like Purch. Org, Purch. Group and Company Code then click Enter
Enter line item fields information like Account assignment -K, Item category- D (it is for service), short text, quantity, unit of measure, delivery date, net-price, currency, material group, plant, and storage location. Enter the required information in the below screen and click on enter.
In the below screen, you need to enter the G/L account (Painting services account) and Cost Center then click on Enter.
The system has been generated the PO Order number in the below screen.
5.2 Post Service Entry and Goods Receipt-ML81N
Click on Other Purchase Order in the below screen.
Enter the Purchase Order Number and Click on enter.
In the below screen, Right-click on ‘Painting Services’, select ‘Create’, then click on ‘With planned services’ and Press enter
When you are posting a service entry, whenever you release (green flag) and save the document, then only the system will generate the goods receipt document along with the service entry. Otherwise, you will not get the Goods Receipt document.
Enter and Save
5.3 Display Purchase Order History-ME23N
In the below screen, click on Purchase Order History, then you will able to see the Goods Receipt document and Service Entry.
If you double click on Service Entry in the above screen, you can able to see a total of 10 quantity of painting Services has been taken in the below screen.
5.4 Invoice Receipt-MIRO
- If the Price is the same at the time of PO and Invoice, then the Accounting entry will be like this on the below screen
If the price is changed from 10000 Rupees to 12000 Rupees, then the values will be adjusted to the expenses GL account always. In the below screenshot, you can find the accounting entry.
Click on post
5.5 Vendor Payment-F-53/F110
The treasury department will make the payment. They use F-53 / F110 (Manual/Automatic) for outgoing payment.
We have now understood the different scenarios in the P2P process and detailed information about the Consumption PO, Stock PO with Price Differences, and Service-Related PO with price differences. I will post the remaining scenarios in my future blog post. The process is applicable not only for the ECC system but also for the S4HANA system. In the case of the S4HANA system, we will use respective Fiori Apps without remembering transaction codes. I hope this blog post will help someone. I will update the remaining scenarios from my list in future blog posts.