What you mean by procure to pay cycles? Can u tell me the Journal entry for procure to pay cycles?

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Narayan Reddy Gunreddy

  • May 5th, 2006


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 .

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Narayan Reddy Gunreddy

  • May 5th, 2006

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

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  • Jul 18th, 2006

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,

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  • Jul 23rd, 2006

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

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  • Jul 29th, 2006

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)

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  • Jul 31st, 2006

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

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  • Apr 25th, 2007

You can check the onhand inventory.

You should have sufficient on hand quantity to pick release the order.

You can do miscellinious receipt to increase the inventory.

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  • Jun 4th, 2007

Where are these entries for JV passed when GRN is received; Which Resposiblity give an example.


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  • Aug 2nd, 2007

Procure pay cycles also called as supplier cycles

It is stared from


2. Requisition

3. Request for Requisition(RFQ)

4.Quotation (sent by supplier)

5.Quotation Analysis

6. Purchase order

7. Receiving the item

8. Payment.

9. Journal entry

10. Transer to General Ledger

1) When ever we receive the material to staging area
receiving inventory a/c Dr
To Ap accrual a/c
2)staging area to sub inventory
inventory a/c Dr
To receiving inventory a/c
3)when we are creating the invoice
AP accrual a/c Dr
To Liability a/c
4) Against liability we have to pay
Liability a/c Dr
To Cash a/c

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Lakshmi L

  • Feb 1st, 2013

4.Purchase Orders
7.Transfer to GL

Journal Entries:

1. Receive

Receiving Material
To Accrual

2. Deliver

Inventory Material Cost
To Receiving Material

3. Invoice Matched to Po

AP Accrual
To Payables

4. Payment

To Bank Clearing

5. Receive Bank Statement in Cash Management

Bank Clearing
To Cash

6. Material issued to PRODUCTION department

To Material Cost

Somendra Singh

  • Feb 27th, 2018

P2P Cycle is a AP Cycle which Start from Procure (Buy) and ends with Payment
Steps with accounting:-
Requisition No accounting
PO No accounting
Receipt Inventory Receiving A/C AP Accrual A/C
Inspection No accounting
Delivery Inventory Valuation Inventory Receiving A/C
Invoicing AP Accrual Liability
Payment Liability Cash Clearing
Bank Clear Cash Clearing Bank A/C
Delivery Expense Inventory Valuation

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