SAP · Module 3 of 10

Business processes: procure to pay

How a company buys: request, order, receive, invoice, pay.

📖 Key ideas

Procure to pay (P2P) is the buying process, mostly in MM with FI.
Steps: purchase requisition, purchase order, goods receipt, invoice verification, payment.
A purchase requisition is an internal request; a purchase order is sent to the vendor.
Three-way match checks PO, goods receipt and invoice agree before paying.
Each step creates a document number you can trace.

💡 Real-life example: Like a college lab ordering chemicals: the HOD requests, office orders, store checks delivery, accounts checks the bill, then pays.

Purchase requisitionInternal request to buy

Purchase orderOrder sent to a vendor

Goods receiptRecording that goods arrived

Three-way matchPO, receipt and invoice agree