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Procure to Pay (P2P) Process Folow with Journal Entries





Procure to Pay process flow.


1. Requester: Request for goods & the same goes for an approval

2. PR is created & routed for approval

3. Once approved, PO is created.

4. Sourcing activities like, Choosing the right Vendor, Payment info happens meanwhile,

5. PO is routed for approval

6. PO is sent to the supplier.& Vendor signs the agreement (Payment terms)

7. Supplier will send the goods along with Invoice.(PO Number mentioned)

8. Good received & GRN entry is made.

9. Invoice is sent to the AP team

10. AP team process the Invoice (3 way match) - GL coding will be automatically pulled.

11. process for Payment



Few Journal Entries examples are as followed.

1. Goods Received Ware House
Dr        Inventory a/c
            Cr                    GRNI a/c

2. Inv. Register in our system

Dr        RI a/c
Cr                    Trade a/c

3. Receipts Matched/Approved

Dr        GRNI a/c
Cr                    RI a/c

4. Inv. Paid

Dr        Trade a/c
Cr                    Bank a/c

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