Hi

Procure 2 Pay cycle involves two stages

ONE is procure which starts with requesting an item and ends up with getting the item into stores if it is a stockable item or expenses items no need to bring into stores.

Requester placess a request for an item

On approval of request buyer will place an purchase order (LPO).

On approval of LPO procurement dept send LPO to supplier

Finally gets item into inventory

statge TWO Pay:

Making payment against invoice in Payables .

Journal Entries :

On requisition and PO entry there will not be any JV

The first JV will be on Goods Receipt Note (GRN)

1.On GRN

Dr Goods in Transit A/c

Cr Payables (Inventory)Accrual A/c

2.On material received into stores

Dr Material (Stock) A/c

Cr Goods in Transit A/c

3.On Payables Invoice entry and Match PO

Dr Payables (Inventory)Accrual A/c

Cr Ap control a/c

4. On Payment

Dr Payables Control a/c

Cr Bank A/c

hi this is sreekanth these are the steps of procure to pay

1. Analyze to agreement.
   1. Analyzing sourcing requirements.
   2. Negotiate and select suppliers.
   3. Provide specifications and rfqs to suppliers.
   4. -----
   5. ------
   6. ----
   7. Supplier management.

1. Requisition to receipt
   1. approval
   2. requisitions
   3. purchase orders

1. inspect to disposition
   1. receiving and inspection
   2. quality management

1. inventory fulfillment
   1. inventory management

1. supplier invoice to payment
   1. supplier invoice

1. bank statements to cash reconsalization
   1. account payables
   2. cash management

1. period close
   1. period close manufacturing

Thank you

hai srikanth...thanks for ur reply

i want to know abt some of the cycles

order to cash

drop shipment

internal requisition

i want the information with all the needfull setups

awaiting ur reply

thyanking you

manoj marada

1.customer sends details of order or sales dept brings order from customer.

2.Enter the order in Sales order (SO)

3.Book an SO

4.Check for ATP (Available to promise)

5. Check for CTP (Capable to Promise) and CTD (capable to deliver)

6.Schedule SOship date

7.Send SO Acknowledgement

8.Resolve SO Holds

9.Release Credit Holds (Go to SO actions tab and release hold or increase the credit amount in customers->>standard-->>profile:amount)

10.Pick material (Pick release material from Inventory)

11.Pick wave MO is generated by system and material is moved to staging

12.prepare material for shipment (Packing)

13.Load Material

14.Ship material (Send ship documentslike bill of lading customer invoice packing list vehicle load sheet)

15.Generate invoice in AR AR-> setup-> Auto invoice and send it to cus.

16.customer followup (calling customer thruphone Dunning letters etc)

17.Customer payment aganist the invoice and receive payment

18.Financial reconcilation (reconsile shipment and payment done by customer)

thanks harish

i got the info what i want

can u(anybody)tell me the setups for 'order to cash' cycle i am getting the problem at the time pick release there only i stucked

so let me know

thanku in advance ..

with regards

manoj marada