In general, a business entity needs to buy or procure resources in order to provide their business goods/services/products. What Triggers the AP/PTP Process to Start? Payment Proper – Actual payment to the Vendor for providing the requested goods/service.This triggers the need for the company to pay the vendor.

Invoice Receipt (IR) – An IR is created when a vendor invoice is received for the goods / services rendered.Service Entry – When the requested service has been rendered, a service entry is entered in the system.Goods Receipt (GR) – When the requested items or goods have been received, a GR is entered in the system.This can be linked to a purchase requisition. Purchase Order (PO) – This is an official company document agreed between the company and vendor.This can be linked to an outline agreement, contract, etc. Purchase Requisition (PR) – This is a company internal document which is issued or created whenever goods/services are required.Key word here is that it is “scheduled over a period of time” or recurring up until a certain time frame. The scheduling agreement usually contains fixed dates, quantities, materials, services, etc. Scheduling Agreement – This is a “long-term” Outline Agreement (OA) between the vendor and the company over a material or service that is procured over a period of time.

Contract / Outline Agreement (OA) – This is the general agreement between the selected vendor and the company (for example, the agreed item/service, qty, price is indicated).

Once the quotations are received, you can maintain the records in SAP & change the RFQ to a quotation This helps the business compare vendors, price factors, etc.

Request for Quotation (RFQ) – This is done when you need several quotations from different vendors for a material or service.

*multiple or collective release approval Purpose Document for Release / ApprovalĬontract / Outline Agreement (OA) / Scheduling Agreement

The approvers for each document will access the corresponding TCodes to execute / perform approvals. Note that if there are approvals that need to be done for OA’s, PR’s, and PO’s, these are the additional SAP standard transaction codes that need to be part of the flow. The SAP Accounts Payable (AP) or Procure to Pay (PTP) Process involves purchasing of goods / materials or services from a vendor for the company.

Procure to pay process sap