PURCHASING PROCESS · PROCESS MAP
What is Procure to Pay?
Understand how SAP turns an approved business need into received value, a verified liability, and supplier payment.
Procure to Pay flow
Select any stage to explore
How the process works
P2P is the controlled path from an internal demand to a cleared supplier liability. Each stage creates evidence for the next, so buyers, warehouse teams, accounts payable, and treasury can act from the same document history.
Demand may be entered manually or generated from MRP, sales, production, maintenance, or projects. Some authorized scenarios create a PO directly; a requisition remains valuable when request ownership, account assignment, sourcing, budget, or approval must be evidenced before commitment. See the MM context behind the request.
HOW SAP FRAMES THE NEED
Four structures make procurement executable
The process explains what the business does. These structures explain the operating context, supplier identity, purchase-order record, and mechanisms that determine value, authority, promise, and communication.
Material, organization, and stock
Master data, plant, purchasing organization, inventory, planning, valuation, and account determination establish the procurement frame.
Explore MM foundations → SUPPLIERBusiness Partner and supplier roles
The leading identity, company-code and purchasing extensions, partner functions, payment, tax, and blocks establish who can supply and be paid.
Open supplier model → STRUCTUREPurchase order anatomy
Header, item, account assignment, delivery schedules, and indicators separate shared commitment from line-specific execution.
Open PO anatomy → DETERMINATIONConditions, confirmations, workflow, output
Price technique, expected supplier responses, approval authority, and output turn the document into a governed commitment.
Open purchasing mechanics →- 01
Need — Purchase requisitions turn a business need into a controlled request.
A requisition states what is needed, how much, when, and for which account assignment. It is an internal document—not a supplier commitment.
Example: A maintenance planner requests a replacement motor. Cost center and delivery date make the need actionable before Purchasing contacts a supplier.
- 02
Purchase order — A purchase order is the commercial commitment sent to a supplier.
It records supplier, material or service, quantity, price, tax, delivery terms, plant, and account assignment. Source lists, contracts, and quotations can supply its terms.
Example: A buyer converts the approved motor requisition into a PO referencing a negotiated contract and sends it electronically.
- 03
Goods receipt — Goods receipt confirms that ordered goods arrived and updates stock or consumption.
Referencing the PO checks quantity and delivery status. For valuated material, the posting normally debits inventory and credits GR/IR; services use service entry and acceptance.
Example: The warehouse receives nine of ten motors. SAP records a partial receipt and leaves one unit open for delivery.
- 04
Invoice — Invoice verification checks the supplier claim against what was ordered and received.
SAP compares PO price, received quantity, tax, and invoice value. Differences beyond tolerance can block payment while preserving the liability for review.
Example: The supplier bills ten motors but only nine were received. The invoice is posted with a payment block until the mismatch is resolved.
- 05
Payment — Supplier payment selects due, valid liabilities and settles them through an approved bank channel.
The automatic payment program proposes items using due dates, payment methods, bank selection, blocks, and available discounts. Approval and payment-media steps remain controlled.
Example: The approved invoice is paid on its due date; the vendor open item is cleared and the bank clearing account is posted.
DOCUMENT FLOW
One need, one connected audit trail
SAP links the request, commitment, receipt, supplier claim, and settlement. Users can trace quantities, values, status, and exceptions without rebuilding the story in a spreadsheet.
See the commercial commitmentCONTROL POINTS
What keeps P2P reliable?
The process is strongest when authority, evidence, and exceptions are visible at the point where a commitment or posting is made.
Approval and budget
Release workflow, account assignment, sourcing rules, and budget checks confirm that the need is authorized.
Explore requests → BEFORE LIABILITYThree-way match
The purchase order, receipt, and invoice are compared. Tolerances route material differences for review or block payment.
Explore invoice checks → BEFORE CASHPayment governance
Due dates, payment blocks, approved bank channels, maker-checker review, and payment media protect settlement.
Explore payment →Explore requisitions, sourcing, purchase orders, receipt, invoice verification, payment, and the connected document trail.
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