Procure to Pay (P2P) Cycle in SAP with Movement types:

Procure to Pay (P2P) Cycle in SAP with Movement types:

P2P Cycle and Movement Types

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Procure To Pay Cycle

Purchase Requisition: ME51N

It is a request that is made to Purch org to buy a certain list of materials.

Purchase Order Creation: ME21N

It is an official document issued by buyer stating that we are committed to pay vendor for the goods/services to be delivered in future.

• No Accounting entry

Goods Received against Purchase order: MIGO

• Inventory  Acc    Dr 🡪 BSX 🡪 101 Movement Type
• GR/IR  Acc    Cr 🡪 WRX

Invoice Received against Purchase order: MIRO

• GR/IR  Acc    Dr 🡪 WRX
• Vendor  Acc    Cr

Make Payment to Vendor: F-02/F-53(Manual payment) /F110 (Automatic payment)

• Vendor  Acc    Dr
• Outgoing Bank  Acc    Cr

DME and EBS

Once payment done in F110, DME file will be generated and this DME file need to send to bank so that bank will pay the amount to the vendor mentioned in DME file.

After bank paid to vendor, bank will now send us EBS(electronic bank statement)  and that EBS we will upload in FF_5 for bank reconciliation. Final accounting entry will be

• Outgoing bank  Acc    Dr
• To main bank  Acc    Cr

Movement types with accounting entries FI – MM

It is a 3-character key which differentiate various material movements. This document’s intention is to understand transaction keys, general modifier, movement types.

101 🡪 Goods Received against purchase order

• Inventory  Acc    Dr 🡪 BSX 🡪 101 Movement Type
• GR/IR  Acc    Cr 🡪 WRX

102 🡪 Goods returning to vendor (received few/all damaged goods)

• Vendor  Acc    Dr
• Inventory   Acc   Cr 🡪 BSX 🡪 102 Movement Type

122 🡪 Goods cancellation (Ex: Static mistake – received 50 kg instead of 15 kg)

• Vendor  Acc    Dr
• Inventory  Acc    Cr 🡪 BSX 🡪 122 Movement Type

561 🡪 Initial stock upload

• Inventory of Raw Material  Acc    Dr 🡪 BSX 🡪 561 Movement Type
• Stock data transfer  Acc    Cr 🡪 BSA

261 🡪 Raw material issued to Production order

• Inventory RM Consumption   A/c   Dr 🡪 VBR
• Inventory of RM  Acc    Cr 🡪 BSX 🡪 261 Movement Type

101 🡪 Goods Received against production order

• Finished Goods  Acc    Dr 🡪 BSX 🡪 101 Movement Type
• Change in finished Goods  Acc    Cr 🡪 AUF

601 🡪 Goods issue to customer for sale

• Cost of goods sold  Acc    Dr 🡪 VAX
• Finished Goods  Acc    Cr 🡪 BSX 🡪 601 Moment Type

551 🡪 Scrapping of goods

• RM Scrapped  Acc    Dr 🡪 VNG
• Inventory of RM  Acc    Cr 🡪 BSX 🡪 551 Movement Type

Stock transfer order entries

1. Stock movement from one storage location to another location within a plant.

• No Accounting entry.

2. Stock movement from one plant to another plant.

• Accounting entry in Sending Plant
  • Inventory  Acc    Dr    10000
  • Stock transfer  Acc    Cr    10000
• Accounting entry in Receiving Plant
  • Stock transfer  Acc    Dr    10000
  • Inventory  Acc    Cr    10000

Summary – OBYC settings used in this document:

Transaction keys: BSX (Raw material, finished goods), WRX (GR/IR), GBB (off setting entry for inventory posting).

Under GBB 🡪 General modifiers BSA, VBR, AUF, VAX, VAT, VNG.

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