Procure to Pay (SAP MM)

Complete Procure to pay cycle with real industrial example

Topic cover
 Procure to Pay cycle
 Procurement of Material (Non stock and consumable)
 Create PR
 Create RFQ
 Maintain RFQ
 Make price comparison
 Create PO reference to RFQ
 Good receipt and Invoice update
 Procurement of Service
 Create Service master
 Create Service PR
 Create Service PO reference to RFQ
 Service Entry sheet
 Payment posting
Procurement to Pay
Determine
the
requirement
PR

Determine
Payment the source
processing
RFQ

MM Purchase order

…………………
………………….
……………….
………………
……………

Good PO
receipt processing

PO
monitoring
Procurement of Material (Non stock)
 A company require Laptop (25 No.) and Desktop (100 No.) for their
employee with 3 year onsite warranty term. Payment will be made against
delivery.
 A company require to procure Laptop Battery (10 No.) and Keyboard/
Mouse (10 No.) for computer repair.

Create :ME41
Create : MM01 Modify : ME42
Modify : MM02 Display : ME43 MIGO
Display : MM03 Maintain : ME47
Comp.: ME49

Create Create
Create Good Bill
Material Create PR Purchase
RFQ receipt Payment
Master order

Create :ME21N
Create :ME51N
Modify : ME22N
Modify : ME52N MIRO
Display :
Display : ME53N
ME23N
Procurement of Material (Non stock)
 Non stock material are also known as consumable or
spare part material and are directly procured on cost
centers or internal order number.
 They can be procured with or without material master
(one time item) as per material usage.
 Material type UNBW( Non value material) and NLAG
(Non stock material) is used for creating material master.
 Procurement of Services (Activity)
 A company require AMC support on hardware along with 2 on site man
resources.
 A company want to repair the CNC machine on chargeable basis.

Create :ME41
Modify : ME42
Service Entry
Service Master Display : ME43
sheet :
: AC03 Maintain :
ML81N
ME47
Comp.: ME49

Create Create Service

Create Bill
Service Create PR Purchase Entry
RFQ Payment
Master order Sheet

Create
Create :ME21N
:ME51N
Modify :
Modify :
ME22N MIRO
ME52N
Display :
Display :
ME23N
ME53N
Procurement of Service (Activity)

 Activity or services which are managed by third party ( service provider) at

plant or out side can be cater by service PO.
 It give transparency and better control over cost.
 By using this we can avoid the duplicity of invoice booking.
 Service or activity is maintained on material group as per their nature in
service master.
 Service master and service entry sheet will be create and maintained by
executer.
 Bill passing will be based on released (By finance guy) service entry sheet.