Procure To Pay Cycle
Procure To Pay Cycle
Procure To Pay Cycle
Procure to Pay
1. DETERMINATION
OF REQUIREMENTS
9. PAYMENT
8. INVOICE
VERIFICATION
Procurement
2. SOURCE DETERMINATION
6. GOODS
RECEIPT
5. ORDER
MONITORING
4. PO
PROCESSING
3. VENDOR SELECTION
Accounts Payable
Originates from the Purchase-to-Pay Cycle
Purchase Req
Purchase Order
Released to suppliers
Goods Receipt
Dr. Inventory/Asset
Cr. GR-IR Clearing Account
Invoice
Verification
Accounts
Payable
Payment
XX
XX
Payment Run
XX
XX
Determination of Requirements
creation
Price comparison of the quotations
Goods Receipt
Goods Receipt with reference to
PO
Material document and Accounting
document creation after posting
Resulting to:
Inventory update
Update of G/L accounts
Updates in the Purchase Order
Update in Material cost (Moving
Average Price)
referencing
Provides 3-way matching (Purchase
Payments (A/P)
referencing
Provides 3-way matching (Purchase
Payments
Vendor
invoice
Purchase
Order
Released
invoice
? 10
20
1000
30
Invoice
Invoice
verification
verification
Bank
Vendor
Payment
Payment
program
program
1000
Blocked
invoice
Payments (A/P)