What is the P2P Process in SAP ?
The P2P cycle is the process of qcquiring goods or services from external vendors, receiving them, verifying them and processing vendor payments. It integrates MM and FI modules.
- P2P is the process of procuring goods/services and making payments to vendors. It starts with a purchase requisition and ends with payment settlement. It includes steps like PR, PO, GR, IR and Payment.
What are Key Steps in P2P cycle ?
Purchase requisition (Optional) - ME51N
Purchase order Creation - ME21N (Manage Purchase Orders)
Goods Receipt - MIGO (Post Goods Receipt)
Invoice Receipt - MIRO(Create Supplier Invoice)
Payment to Vendor - F110 (App. Manage Automatic Payment)
What is the accounting entry at the time of goods receipt in SAP S/4HANA ?
Dr Inventory A/C
Cr GR/IR Clearing A/C
Note - No Vendor accounting entry is posted at this stage.
What are the common T-codes used in P2P ?
ME21N - Create Purchase Order
MIGO - Goods Receipt
MIRO - Invoice Receipt
F110 - Automatic Payment Run
F-53 - Manual Payment
How is GST handled in the P2P cycle in india ?
GST is configured using tax procedures (TAXINN). During Invoice posting (MIRO), input GST is automatically calculated based on tax codes.
How is invoice verification nandled in sap ?
Invoice verification is done using MIRO. The s system matcheds the PO, GR, and invoice to ensure accuracy (3-way match). This step posts accounting entries and updates vendor balances.
What master data is involved in P2P ?
-- Vendor Master (FI & MM views)
--- Material Master
--- Purchasing info records
-- Tax codes
-- G/L accounts (Inventory, GR/IR, Vendor Record)
How do you configure the Automatic Payment Program (APP) ?
Use T-code F110, stpes include:
- Configuration in FBZP
- Assign company code, payment method, bank details
- Maintain parameters, proposal run and execute payment.
What are the integration points between FI and MM in P2P ?
- GR/IR account (BS)
- Inventory postings
- Tax accounting
- Vendor reconciliation account
How does S/4HANA simplify the P2P process ?
S/4HANA removes redundant tables (e.g.BSEG, BKPF simplified) provides Fiori apps for real time analytics and embeds machine learning for invoice matching and fraud detection.
What are blocking reasons during invoice verification ?
- Quantity variance'
- Price variance
- Missing GR
- Duplicate invoice
- Mismatch in PO/GR/IR
What is the use of fiori in the P2P process ?
Fiori apps like "Manage Purchase Orders", "Post goods receipt" and "Manage Supplier Invoices" allow users to perform tasks easily with better UI and analytics.
Explain the role of payment terms in vendor master ?
Payment terms define due date calculation and cash discounts. It controls the aging and payments behavior of vendor invoice.
How is withholding Tax(TDS) handled in P2P ?
TDS is configured in vendor master. At MIRO or F-43/F-02, SAP automatically calculates and posts TDS to the correct to the G/L account.
ME51N - Create Purchase Requisition
ME54N - Approve Purchase Requisition
ME21N - Create Purchase Order
ME28 - Approve Purchase Order
MIGO - Post Goods Receipt
MIRO - Post Invoice
FBL1N - Display Vendor Line Item
F-44 - Clear Vendor Account
F-53 - Manual Payment Processing
F110 - Automatic Payment Run
