What is procure to pay in SAP MM - Materials Management?

SAP Term: procure to pay

• Component: MM

• Component Name: Materials Management

• Description: Procurement process from the requirement or shopping cart through to payment. This process uses functions in SAP ERP and SAP SRM.

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• Key Concepts: 
  Procure to pay (P2P) is a process in SAP Materials Management (MM) that covers the entire process of purchasing goods and services from external vendors and paying for them. It includes activities such as creating purchase orders, receiving goods, invoicing, and payment. 
  
  How to use it: 
  The P2P process begins with the creation of a purchase order. This document is sent to the vendor and contains information about the goods or services being purchased, the quantity, and the price. Once the vendor has received the purchase order, they will send an invoice for payment. The invoice is then checked against the purchase order to ensure accuracy before payment is made. 
  
  Tips & Tricks: 
  It is important to ensure that all documents related to the P2P process are accurate and up-to-date. This includes purchase orders, invoices, and payment records. Additionally, it is important to keep track of any changes in pricing or quantity of goods or services being purchased. 
  
  Related Information: 
  The P2P process is closely related to other processes in SAP MM such as inventory management and warehouse management. Additionally, it is important to understand how the P2P process interacts with other SAP modules such as Financial Accounting (FI) and Controlling (CO).