Any FICO Consultant needs to grasp the P2P and O2C business cycles in order to better comprehend the client’s operations.

Purchasing to Pay

In the procure to pay cycle, a company will research, request, obtain, and then pay for raw materials and services.

Making a Purchase Request (ME51N)

ME41 Making Inquiry

Creation of Purchase Orders – ME21N

Publication of Purchase Order ME28

Vendor goods received: MIGO (MM & FI Integration)

Inventory of Raw Materials Dr. – (Transaction key BSX in OBYC )

Cr. GR/IR Clearing account (Transaction key WRX in OBYC )

Issued Products for Consumption (MM-FI-PP Integration)

Consumption of raw materials a/c Dr.

Account for raw materials in inventory in Cr.

production stipend (MM-FI-PP Integration)

Inventory of finished goods a/c Dr.

Stock Account Change in Cr

Verification of Invoices – MIRO

 GR/IR Clearing Account Dr.

Supplier a/c Cr

F110 for Automatic Payment & F-53 for Manual Payment to Vendor

Dr. Vendor a/c

Banking Cr

Purchase to Cash

A group of corporate procedures known as “order to cash” comprise receiving and completing consumer orders for products or services.

Question from the Client – VA11

Requesting Quote – VA21

Order for Sale – VA01

Final product delivery – VL01N (SD-MM-FI Integration)

Dr. Stock Ac Change (Transaction key GBB in OBYC )

final products A/C Inventory Cr ( Transaction key BSX in OBYC )

Billing for Customers – VF01

Dr. Customer A/C

Revenue a/c Cr – (Account key ERL in VKOA )

Payment Receipt – F-28

Dr. Cash/Bank a/c

Client Account Cr

If you find the blog helpful, please like and share it!