Process Description (Procure-to-pay )
PepsiCo implements a new procurement system called Purchase to pay(P2P)
to optimize their procurement processes and minimize cost across their
division:
1. Need Identification: The need for goods and services across its division
is identified.
2. Requisition Creation: A formal request is made for the required goods
or services
3. Purchase Oder Issuance: Once the purchase requisition is approved by
relevant management, a purchase order is issued to the supplier.
4. Goods receipts: The supplier delivers the requested goods or services,
and PepsiCo creates a good receipt note
5. Invoice Processing: The supplier submits an invoice which is entered
into PepsiCo’s processing system
6. Invoice Matching and approval: The invoice is matched against the
purchase order and receiving documents. Any exceptions are flagged
for investigation
7. Payment: Approved invoices are passed to accounts payable for
payment
From the above, see the listed procurement process for mapping.
Procurement process:
Material Planning:
1. Stock requirements list
2. Create purchase requisition
Procurement:
3. Create request for quotation
4. Maintain quotation from vendors
5. Evaluate quotations on price
6. Reject quotation OR accept quotation
7. Approve vendor
8. Create purchase order referencing RFQ ( Request for quotation)
9. Approve purchase order
10.Send PO to selected vendor by email, mail, web services
11.Send acknowledgement OR rejection notice BY VENDOR.
Warehouse and Quality management:
12.Receive goods from vendors
13.Verify physical receipt of goods
14.Create good receipt note for purchase order, quantity and materials delivered
15.Reject or approve receipt of goods by company Representative
Account Payable:
16.Receive invoice from vendor
17.Verify and Check vendors invoice and material document.
18.Approve vendors for payment
19.OR reject vendor’s invoice if PO and goods receipt note do not align
20.Send vendor's invoice for payment authorization
21.Authorize vendor’s payment
22.Verify vendor’s payment terms, bank and calculate amount.
23.Post payment to vendor by check or electronic transfer.
24.Send payment advice to vendor
25.Vendors confirm receipt of payment
26.Post General ledger and vendor’s account.
