SAP Purchase To Pay Flow (P2P) In Simple words For ABAPer's.


Requirements (SD, PP, PM...) ---> Purchase Requisition ---> Purchase Order (Sent to vendor) ---> Goods Receipt (Receiving Material from Vendor) ---> Invoice Verification (Invoice from vendor) ---> Vendor Payment.


1) The requirements flow from different SAP modules to MM-Purchasing via MRP run (Material Requirements Planning), this creates Purchase Requisitions.

2) Based on the purchase requisition and information from purchasing info records the vendor is decided and a Purchase Order is created.

3) The Purchase order is sent to vendor and the vendor ships the material.

4) Goods Receipt is created in the SAP system for receiving the materials from Vendor.

5) Vendor sends an invoice for the Purchase order and it is entered into the SAP system using Invoice Verification.


The purchasing process is initially started when there is a requirement of material/service from a user. If the material/service cannot be obtained from company’s internal resource, the responsible person of that company must find the vendor/supplier which can provide it on the required date. The purchasing process is ended when the payment processing to the vendor that supply the material/service has been done.

1) Determination Of Requirements - PURCHASE REQUISITION (ME51):

For production of goods or materials, raw material is required. Hence before starting the production, one should check whether the required raw materials are available or not. If materials are not available in stock, then the concerned production department person places a request to the MM manager that these are the list of materials required for the production of end product/goods. These requirements must be recorded as Purchase Requisition (PR) document in SAP MM.

Hence Purchase Requisition (PR) is an internal purchasing document in SAP ERP that is used to give notification to responsible department about the requirement of material/service and to keep track of such requirement.

In other words we can say that it is a document used to give notification to responsible department about the requirement of material/service and to keep track of such requirement. PR must contain clear information about the description and quantity of the material/service, the required date, and other information.

PR can be created directly in SAP MM module with ME51N transaction code.

Two types of purchase requisitions:

  • Internal Purchase Requisitions: Requesting the transfer of materials from another plant/company storeroom.
  • External Purchase Requisitions: Requesting the purchase of the necessary materials from an outside vendor.

2) Determination Of The Source Of Supply – SOURCE LIST (ME41):

After the PR has been created in the previous step, the responsible department must process it. The buyer of the procurement department must determine the possible sources of supply of the material/service specified in the PR based on past orders and existing long-term purchase agreements. On the basis of source list, Request For Quotation (RFQ) can be created and sent to shortlisted vendors through ME21N transaction code. An RFQ document is a request sent to the entire shortlisted vendor to submit a quotation for the supply of materials.

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1) Introduction To SAP MM Module (Material Management).

2) SAP MM - Important Transaction Codes, Table Links & Flows.

3) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page I.

4) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page II.

5) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page III.

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