P2P Cycle

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. 

What master data is involved in P2P ?

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