Dhanush InfoTech

Submitted to:

Dhanush Library

Author: M.Gokula Krishnan

Head Office:

# 1-4-448,
Floors: 4, 5 & 6, Laxmi Building,
S.P Road, Begumpet,
Secunderabad
Andhra Pradesh – 500003
Ph :+91 40 30722112/3/4/5
+91 40 42012454
 Table of Contents

1. Introduction ............................................................................................................. 3
2. Requisition .............................................................................................................. 4
3. RFQ .......................................................................................................................... 7
4. Quotation ............................................................................................................... 10
5. Quote Analysis...................................................................................................... 12
6. PO .......................................................................................................................... 14
7. Receipt................................................................................................................... 17
8. Receiving Transaction ......................................................................................... 19
9. Supplier Invoice .................................................................................................... 20
10. Payments ........................................................................................................... 25
11. GL Transfer ........................................................................................................ 28
1. Introduction

Procure to Pay (P2P) is the business flow where one can procure material and
paying for accepted item, it is accepted items because customer might not have received all the
items from the supplier, and once again it is not sure that all the received items will be of
expected quality so that the customer might return it, so the rest left with customer is the
accepted quantity.

Procurement:

The process starts with a requisition from the buyer, who is an employee. The
requisition which got raised is approved by his heads. When requisition get approved RFQ is
created with Requisition details, this RFQ is sent across to concerned supplier requesting for
Quotation (RFQ). After receiving Quotations from all the suppliers one or more supplier is
selected through Quote Analysis. Purchase Order is created with the items and sent to the
selected Suppliers. Receive the goods into the inventory.

Payment:

Match either the PO or the Receipt with the invoice to populate line and
distribution details. Validate the invoice to check the whether the line total and the invoice total
are the same. Create Accounting for creation and validation of invoice. Make payments for the
invoice and create accounting for the payment. Transfer both Accounting Details to the ledger.
2. Requisition

Navigation: Purchasing ->Requisitions ->Requisitions

Enter values for Item, Quantity, Need By Date, Destination Type, Requester , Organization,
Location.

Click on Distributions

Enter values for Charge Account (Inventory Material Value), Accrual Account (Inventory AP
Accrual A/c) and Variance Account (Invoice Price Variance), Save the changes.
Click on Approve

Click on Approve to approve or send it for approval.

 To check the status of the requisition follow the below mentioned Navigation,

Navigation: Purchasing ->Requisitions ->Requisition Summary

Query with Requisition Number,

Click on Find

As no Approval Hierarchy is defined it got approved.

3. RFQ
Now we need to create RFQ using the requisition details,

Navigation: Purchasing ->Auto Create

Clear the field and query with the requisition Number.

Check the required requisition, Select Document Type as RFQ and click on Automatic.
Select RFQ Type as Bid RFQ.

Click on Create.

RFQ 8 got created automatically.

Change the Status to Active.

Click on Suppliers

Select the suppliers to whom RFQ need to be sent, save and exit the window.

Navigation: Tools ->Copy Document

Enter values for Action, Type and Supplier and click OK

 4. Quotation

New quotation got created for “Ace Glass”, repeat the process to create Quotation for “Test
Supplier”.

New quotation got created.

Change the Status to Active.

Manually Change the price if the Suppliers quotation price is different and Save.

Change the price in Shipments.

Repeat the process for “Test Supplier”.

 5. Quote Analysis

Navigation: Purchasing->RFQ’s and Quotations ->Quote Analysis.

Query with RFQ Number.

After analyzing the quotations select a quotation and click on Approve Entire Quotation.

Enter Type and Reason, Click OK.

Get back to Approved Quotation, Select Tools->Copy Document

Enter Value for Document type which is “Standard PO” and select OK.

Purchase Order got Created.

 6. PO

Click on Shipments

Click on More tab enter values for Match Approval Level and Invoice Match Option.

Match Approval Level Invoice Match Option.

2 – way PO
3 – way Receipt
Click on Distributions

 Charge Account is “Inventory Material Value”

 Accrual Account “Inventory AP Accrual A/c”
 Variance “Invoice Price Variance A/C”.

Which means the invoice is going to be matched with PO which is 2 – way matching.
Click on Approve.

Click OK to approve or send it for approval.

As no approval hierarchy is defined it got approved.

 7. Receipt
Navigation: Purchasing ->Receiving ->Receipts

Select the inventory mentioned in the requisition and PO.

Query with PO#.

Click on Find
Close this header.

Check the required lines and Save.

Click on Header,

Receipt got created.

 8. Receiving Transaction
Navigation: Purchasing ->Receiving ->Receiving transactions

Query with Receipt #

Click on Find

Check the required lines and enter Receiving Sub Inventory and Save.

We can note that the inventory value will be increased by 1.

9. Supplier Invoice

Navigation: Payables ->Invoice->Entry ->Invoices.

Enter values for the following,

 PO Number (After entering PO Number Supplier site & Number defaults)

 Invoice Date
 Invoice Number
 Invoice Amount
 Matching (PO or Receipt)
 Payment Type

Line Tab:

Click on Match

Query with PO #.
Click on Save

Line Tab got filled automatically on matching with PO.

Click on Distributions
We can see the Details got defaulted from the PO, if we don’t match with a PO we need to enter all the
mandatory details.

Save and Exit.

Click on Actions ->Validate ->OK.

Click on Actions ->Create Accounting ->OK.
 Tools ->View Accounting Events

Accrual Account got debited and Liability Account got credited, which shows Supplier liability has
increased with this procurement.
 10. Payments

Navigation: Payables ->Entry ->Payments.

Enter mandatory details and click on “Enter/Adjust Invoices”.

Select the invoice from the List of Values, save and exit.
Click on Payment Overview

Actions ->Create Accounting -> OK.

Tools ->View Accounting

Liability A/C got debited and Cash Clearing A/c got credit which means supplier liability is decreased by
payment.
 11. GL Transfer

The above generated accounts need to post in the GL.

View ->Request ->Submit New Request ->OK -> Transfer Journal Entries to GL

Enter required parameters and submit.

Click on Find
To view the transferred entries in the Journals

Navigation: General Ledger ->Journals ->Enter

Query with Batch Name entered as a parameter.

We can see 2 entries.

 PO Invoice

 Payment