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MODULE TOPICExplore the capabilities that make P2P work

PROCURE TO PAY · SETTLE

How does SAP select, pay, and clear supplier liabilities?

The payment process selects due and permitted supplier items, applies bank and payment-method rules, routes the proposal for review, creates payment media, and clears the liability.

PROCESS ROLE

Payment converts an approved liability into controlled cash movement

Due date, payment terms, discount, payment method, currency, payment block, supplier bank data, house bank, ranking order, available funds, approval, and payment media all contribute to the settlement decision.

OPERATIONAL FLOW

What happens in SAP

Read the sequence as one connected business event, not as isolated transactions.

01PROPOSE

Select due liabilities

The payment run evaluates company code, supplier, due date, payment method, currency, blocks, discounts, and run parameters.

02REVIEW

Resolve proposal exceptions

Missing bank data, invalid methods, blocks, amount limits, duplicate runs, and sanctions or approval exceptions are investigated.

03PAY

Post and create bank media

The approved run posts payment documents, creates the designed clearing or outgoing-payment entries, and produces bank instructions.

04RECONCILE

Confirm settlement

Supplier items clear, bank status and statements are monitored, rejected payments are repaired, and clearing accounts reconcile.

DESIGN & CONTROL

What shapes the result

These controls work together; a locally correct setting can still produce the wrong end-to-end outcome.

Due-item eligibility

Payment terms, baseline date, method, block, special G/L status, currency, minimum amounts, and discount rules determine selection.

Bank and media governance

House banks, account IDs, ranking, value dates, payment formats, signatories, file security, and bank communication protect the channel.

Maker-checker and reconciliation

Proposal review, payment approval, segregation of duties, payment-batch status, bank statement processing, and clearing ownership protect cash.

DIAGNOSTIC EVIDENCE

Prove selection, authorization, transmission, and clearing

A payment document alone does not prove that the bank accepted the instruction or that the clearing account reconciled.

PROPOSAL LOG

Run parameters, selected and excluded items, exception reason, discount decision, payment method, and bank determination.

APPROVAL AND MEDIA

Review decision, approvers, payment batch, format, file or API status, bank acknowledgement, and rejection detail.

CLEARING PROOF

Supplier clearing document, bank clearing entry, value date, statement match, residual item, reversal, and reconciliation status.

PROJECT MOMENT

The approved invoice reaches its due date

The proposal selects the unblocked supplier item, applies the negotiated discount, derives the approved bank channel, passes maker-checker review, and clears the payable when payment is posted.

  • Only eligible items are selected
  • Bank choice is explainable
  • Approval is segregated
  • Clearing reconciles
CONTINUE THE PATHContinue to P2P 303

See how demand, sourcing, commitment, receipt alternatives, invoice matching, accounting entries, payment, and clearing connect.

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