PROCURE-TO-PAY

This book is brought up in accordance with the subject of Procurement to Pay. In this book, the subject matter is expressed in clear way so that every reader can understand the subject easily. In the book, I clearly mentioned the Meaning of Procurement, Purchase Requisition, Purchase Order, Goods Receipt, Vendor Invoicing, Payment to Vendor, Advance Payment to vendor, Vendor ageing Review, etc. Hence, this book will help the readers to understand process of P2P. I believe that with the help of this book, every reader gets the scope of knowledge end-to-end process of P2P cycle which helps them in getting the understanding of complete flow chart of P2P.

The main features of the book are simple understanding and key concepts.

This book is useful to everyone in Accounts field like students, Accounts executives, Analysts etc. and I believe that this book will help the users to success in interviews.

It is hoped that this will facilitate a better understanding of the subject matter.

I welcome any valuable suggestions regarding this book in a better and improved way. Suggestions will be incorporated in the subsequent editions.

All the best …


CONTENTS :-
Definition of Procurement
Steps in Procurement to Pay
  I. IDENTIFICATION OF REQUIREMENT
 II. PURCHASE REQUISITION
    (A) Selection Process of Vendor or Supplier
    (B) Creation / Submission of Purchase Request
    (C) Review / Screening the Requisition
    (D) Approval of Purchase Requisition
 III. PURCHASE ORDER
    (A) Creation of Purchase order
    (B) Authorization / Approval of Purchase Order
 IV. GOODS RECEIPT
     (A) Pre-GRN Creation
     (B) Quality Check performance
     (C) Preparation of GRN and updating of Stock Register
     (D) Updating of Excise Records
     (E) Link between GRN(s) and Invoice
    (F) Monitoring of open POs
 V. INVOICE PROCESSING
    (A) Authorization of Vendor invoice
    (B) Accounting of the vendor Invoice
    (C) Reconciliation of Accounting Records with Excise records
 VI. PAYMENT TO VENDOR
     (A) Authorization of Payment entry
     (B) Accounting of the Payment entry
 VII. VENDOR ADVANCES AND RECONCILIATION
    (A) Authorization of Vendor Advances
    (B) Review of vendor ageing analysis
    (c) Vendor Balance confirmation
    (d) Review of vendor Reconciliation
GLOSSARY
 1. Source to Pay
 2. Supply chain
 3. Sourcing
 4. Procurement
 5. Buyer
 6. Purchasing
 7. Contract management
 8. Difference between Vendor and Supplier
 9. 1-way, 2-way, 3-way, 4-way match
 10. Flow chart (cycle) of Procure-to-Pay