ManualDoc:Procure To Pay
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Contents |
Introduction
Procure to Pay workflow manages the life-cycle of a procure process and addresses strategic as well as operational relationship with the external suppliers of the Company.
This workflow is primarly executed within Openbravo Procurement Management application area.
A "Procure to Pay" workflow can be split into below briefly explained main sub-processes:
- Requisition to receipt - this stage starts by the creation and management of formal requisitions of items needed by the Company, which end in the booking of a purchase order/s and the delivery of the items requested.
- Supplier Invoice to payment - the supplier/s sends the invoice/s for the items delivered, which should be paid by the Company on timely manner
Requisition to receipt
The abstract "Requisition to Receipt" business process is defined by the following diagram, and can be summarized in the steps listed below:
- Entering and Managing requisitions caused by the company needs
- Ordering the goods
- Receiving the goods ordered
- Updating inventory as a consecuence of receiving the goods
(to be reviewed)
Roles Involved
The following roles are involved within this process:
- Procurement role is in charge of managing Requisitions and Orders.
- Warehouse role is in charge of receiving ordered goods and placing them into storage.
Supplier Invoice to Payment
The abstract "Supplier Invoice to Payment" business process is defined by the following diagram, which can be summarized in these steps:
- Reviewing and registering the supplier invoices to pay
- Pay the supplier invoices
(to be created)
Roles Involved
The following roles are involved within this process:
- Procurement role is in charge of reviewing the supplier's invoices to be booked.
- Finance role is in charge of booking the supplier's invoices and manage supplier payments.
Relationship with other Business Flows
"Procure to Pay" business flow is fully integrated with below listed business flows:
Supplier Returns
As the items or goods received could be sent back to the supplier if needed.
Accounts Payables Management
As the finance department needs to have up to date and reliable data about accounts payable as its disposal.
Inventory Accuracy
Due to the fact that the inventory must always be up to date and correctly valued.
MRP
Because the purchase planning must allow the creation of purchase orders based on material necessities, keeping in mind minimum stock levels, goods receipts dates, and pending items request.
Please follow Procurement Management application area to understand how Procure to Pay business flow is executed in Openbravo.