Every SAP MM interviewer asks this question to everyone so prepare well first tell them the business scenarios and how it works, it good impressions front of them.If they ask you tell about with T codes and how you did in SAP system then tell the process.
✅ Business Scenario Of P2P cycles
👉🏻Any department can raise the request for purchase requisition (PR), what materials they require, and once it is approved by management, the required material can be procured.
👉🏻Purchasing Requisition will be sent to the purchasing team, who will verify what are material required, and then they verify whether there is a vendor available to provide this material.
👉🏻If the vendor is not available, they will create a Quotation & they will mention how much quantity they need and what time they need, the details they send to 3 to 4 vendors.
👉🏻vendor will send prices and discounts and what are the applicable charges and he will send them to us then we will maintain the quotation and we will compare Quotation as per prices then the system will provide you who is the best vendor as per the prices, who is giving material at less prices
👉🏻 The purchasing team will consider some other parameters offline like what is the vendor's capabilities, what is the of vendor in the market, what is experience, what kind of contract he had done earlier and how is material quality. This parameter is checked offline along with the price given by the SAP system.Then they will decide a vendor to procure these material
👉🏻If you want a long-term relationship and if you want material at a better price then you can create a contract with the vendor for a specific period. Frequently we buy the same material from Vandor, and then the contract is required.
👉🏻Once the Vendor is fixed then we create a Purchase Order (PO), which is an external document, or legal document it used for communication between customers and vendors. PO will created and sent to vendor, vendor will give us the goods.
👉🏻 Once goods are received, store people will do receipt goods receipt (GR) in inventory management then they will give us invoice copy along with a GR, Invoice copy will verify with invoice process SAP by the accounting team,once verification is done payment will be done by finance team.
