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Showing posts from August, 2018

Procure to Pay (P2P) Cycle- by Amod Bhat SAP Consultant at SAVIC Technologies

Procure to Pay, also known as P2P, is the process of obtaining the raw materials needed for manufacturing a product or providing a service, and making payment for these. Every manufacturing concern or service provider needs to run this cycle efficiently if they are to continuously manage their cash flow, build goodwill with suppliers and make profits.

Steps of the Procure to Pay (P2P) Cycle:
*The process begins with planning what materials are required, when they are required, and the price that the company can afford to pay for them. *Then the company prepares a list of vendors that they think can provide the materials for them.
*The company asks each of the vendors to submit a quotation, which includes the price, terms of delivery, quality of materials, and any other information that they need for making their decision. This stage could also involve negotiating with the vendors for the best deal.
*Once a vendor has been chosen, the buyers create a purchase requisition form that includes…

Order-to-Cash Process

Order-to-Cash Process Order-to-Cash is an integration point between Finance (FI) and Sales (SD). It is also known as OTC or O2C in short form. It is a business process that involves sales order from customers to delivery and invoice. It comprises SO, Delivery, Post Goods Issue (PGI) and billing to customers. OTC process is a very important process in Enterprise Resource Planning software(ERP Software). Both major ERP software SAP and Oracle include this process. Its configuration touches both Finance and Sales & Distribution modules. This is an end to end process from customer Inquiry to goods delivery, billing and payment of money. The process starts when a customer inquires for an inventory item (finished goods for a company). The customer gets quote for the item and place an order for the quantity needed. A user from company place the order and pass it for processing. Inventory gets picked up from warehouse and shipped to customer. Billing process also starts with delivery and it…