JANAKI FEEDS PRIVATE LIMITED

(Breeding Division)

Project XXXX

Business Blueprint

Procurement process (P2P Process)

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JANAKI's & Ratiocination

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P2P Process

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P2P Process

Revision History
Created
By:
1st
Review
By:
2nd
Review
By:
3rd
Review
By:
Approved
By:

SrinivaS

Created
Date:

30.03.2015

1st Review
Date:
2nd Review
Date:
3rd Review
Date:
Approval
Date:

JANAKI FEEDS PVT. LTD. Process Owner Sign-of

Name:
Rama Krishna
Position:

Project Manager

Sign-of
Date:
Signature
:

JANAKI FEEDS PVT. LTD. Team Leader Sign-of

Name:
Position:
Sign-of
Date:
Signature
:

RATIOCINATION Leader Sign-of

Name:
Position:

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P2P Process

Sign-of
Date:
Signature
:

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P2P Process

Contents
1. SCENARIO OVERVIEW..................................................................5
2. REQUIREMENTS / EXPECTATIONS..................................................5
3. SAP ORGANISATION STRUCTURE..................................................5
4. BUSINESS PROCESS.....................................................................6
4.1.BUSINESS PROCESS FLOW CHART.......................................................................................................................6
4.2.BUSINESS PROCESS DESCRIPTION.......................................................................................................................7
4.2.1. Create a Purchase Requisition.........................................................................................................7
4.2.2. Request for Quotation.........................................................................................................................7
4.2.3. Quotation Maintenance.......................................................................................................................7
4.2.4. Purchase Order......................................................................................................................................7
4.2.5. Goods Receipt........................................................................................................................................7
4.2.6. Invoice Verification...............................................................................................................................8

5. CHANGES TO EXISTING ORGANISATION.........................................9

6. KEY BUSINESS IMPROVEMENT......................................................9
7. DESCRIPTION OF FUNCTIONAL DEFICITS.......................................9
8. APPROACHES TO COVERING FUNCTIONAL DEFECTS.......................9
9. NOTES ON FURTHER IMPROVEMENTS...........................................9
10. SYSTEM CONFIGURATION CONSIDERATIONS................................9
11. DEVELOPMENTS CONSIDERATIONS.............................................9
11.1. DATA CONVERSION CONSIDERATIONS..............................................................................................................9
11.2. INTERFACE CONSIDERATIONS............................................................................................................................9
11.3. REPORTING CONSIDERATIONS.........................................................................................................................10
11.4. FORM CONSIDERATIONS..................................................................................................................................10
11.5. ENHANCEMENT CONSIDERATIONS..................................................................................................................10

12. AUTHORISATION CONSIDERATIONS...........................................10

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P2P Process

1. Scenario Overview
Procure to pay is the process of obtaining and managing the raw materials needed
for manufacturing a product or providing a service. It involves the transactional flow
of data that is sent to a supplier as well as the data that surrounds the fulfilment of
the actual order and payment for the product or service.
This involves the following phases.

2. Requirements / Expectations
Material Master, Vendor Master will be created in the SAP.
Against the production requirements ,plant will raise a Purchase requisition to the
Purchase department.
The Purchase requisition will be evaluated and once released will be set for Purchase
order. The Request will be discarded also before setting for order.
The Vendor quoted prices will be maintained in Quotation maintenance and prices will
be compared here to finalize the prospective Vendor or Vendors.
Purchase Order will be raised and issued to the prospective vendor. Based on this
document vendor will deliver the goods.
Once goods received at the plant premises, stock will be in-warded through Goods
Receipt process in SAP and subsequently Logistic Invoice Verification will be done for
received goods against the purchase order.

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3. SAP Organisation Structure

4. Business Process
The standard procurement type will be done for all raw materials which covers local
and import purchases.
Based on the stock requirements, the concerned departments at the plant will raise a
Purchase Requisition.
The Purchase Requisition will be released with either individually or collectively.
The Purchase department will raise the Request for Quotation to different vendors to
send their quotes.
The received Vendor quotes and their prices will be recorded and maintained. Price
comparison will be done to finalize the prospective vendor(s).
Purchase Order will be raised to the prospective Vendor (s) and will be released either
individually or collectively.
The Goods Receipt will be done with respect to the Purchase Order.
The Invoice verification will be done against the goods receipt with reference to the
Purchase Order.

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P2P Process

4.1.Business Process Flow Chart

Procure to Pay Process flow chart

4.2.Business process Description

The Procure to Pay process will be done in the following 6 phases.
4.2.1. Create a Purchase Requisition
T. Code ME51N
The Purchase Requisition consists of the following details.

The Document type "NB" shows the procurement type as standard

procurement.

Purchase Requisition will be released using the release strategy. T. Codes

are ME58N & ME59N.

4.2.2. Request for Quotation

T. Code ME41

RFQ document consists of document type as "AN", Quotation deadline

date, purchase organisation, purchase group and the plant details.

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P2P Process

Quotations will be released using the T. Code ME45

4.2.3. Quotation Maintenance

T. Code ME47 & ME49

In quotation maintenance, the quotations will be evaluated with the price

offered by the Vendors using ME47 & ME49.

4.2.4. Purchase Order

T. Code ME21N

Purchase Order consists of the details like company code, Purchase

organisation, Purchase group, document type & Vendor.

Document type for standard purchasing is "NB".

Contains payment terms, vendor details and partner functions, validity

periods and order status.

Material code, material description, Ordered qty, Net price of the material,
delivering plant and storage location.

Stock types, service no & their limits, tolerance limits of the stock receipt,
Pricing conditions, delivery schedules, Tax details, receipt confirmations
and stock release status.

4.2.5. Goods Receipt

T. Code MIGO

Goods receipt consists of purchase order reference details such as

material, qty and delivery location.

The material and accounting entries

batch details if any

shelf life of the material and expiry date

4.2.6. Invoice Verification

T. Code MIRO

Invoice verification will be done using MIRO with reference to the Purchase
Order in the case of Standard Procurement.

Invoice verification will be done using MIRO with reference to Service Entry
Sheet in the case of Services.

Invoice verification consists of Invoice details like Invoice no., date and
purchase order references or the Service entry sheet references.

Contains tax information, payment terms, payment release status.

Invoice processing details like blocking, parking, debits, credit details.

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Ste
p#

Activity

Data
input

Data
Output

Purchase
Requisition

Material,
Purchase
Group
and
plant

Purchase
Requisiti
on

ME51N

Request
for
Quotation

Material,
Qty and
deadline

RFQ

ME41

SAP

Quotation
Maintenan
ce

Vendor
Prices &
Conditio
ns

Prospecti
ve
Vendor
evaluatio
n

ME47 &
ME49

SAP

Purchase
Order

Material,
qty,
price,
price
condition
s,
delivery
address
&
condition
s

Purchase
Order

ME21N

SAP

Goods
Receipt

Purchase
Order no.

Material
&
Accounti
ng
documen
ts

MIGO

SAP

Service
Entry
Sheet

Service
PO no.
and the
Service
no.

Service
Entry
Sheet
No.

ML81N

SAP

Invoice
Verification

Purchase
Order/
Service
Entry
Sheet

Invoice,
Credit
Memo

MIRO

SAP

5.

6.

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T. Code in
SAP

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Departm
ent

Plant

P2P Process

Syste
m

SAP

Remar
ks

5. Changes to Existing Organisation

Purchase Requisition, Quotation and Purchase Ordering all are only through
oral communication. No such document form is available.

Received quote details are not captured anywhere.

Goods receipt is being done with Vendor's invoice(instead of Purchase order

invoice).

Invoice Verification is proceeding with the Material receipt document reference.

Purchase order doesn't have any role in the Invoice verification process.

6. Key Business Improvement

Purchase Requisition, RFQ and Purchase ordering should be done in SAP

instead of oral communication.

GR & Invoice verification should be done with reference to purchase order.

7. Description of Functional Deficits

None

8. Approaches to covering functional defects

None

9. Notes on Further Improvements

None

10. System Configuration Considerations

None

11. Developments Considerations

Developing the Format to be given to Users for Purchase Order.

11.1. Data Conversion Considerations

None

11.2. Interface Considerations

None

11.3. Reporting Considerations

Standard reports available in the SAP system

ME5A - List of all Requisitions

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P2P Process

ME2L - By Vendor

ME2M - By Material

ME2O - SC Stocks per Vendor

MB51 - List of Material documents

MR51 - List of Accounting documents

MB52 - Warehouse stocks status

MB5T - Stock In-transit

11.4. Form Considerations

Smart form for Purchase Order

11.5. Enhancement Considerations

None

12. Authorisation Considerations

Release codes for the release procedure in the case of Purchase

Requisition

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P2P Process