The procure-to-pay process is a process where a company purchases raw materials, semi-finished and finished products needed to do business. The process steps can vary depending on the company business needs. In general, the process starts with a request for quotation and ends with payment for the purchased goods.
1C:Drive supports the following procure-to-pay steps:
- Set up procure-to-pay process.
- Issue request for quotation (RFQ).
- Register RFQ responses.
- Choose best offer.
- Place purchase orders.
- Monitor purchase order delivery.
- Receive goods and process supplier invoices.
- Register tax invoices.
- Register goods return.
- Pay for the received goods.
When you want to make a purchase, you choose goods of certain suppliers. So, before you start your procure-to-pay process, do the following:
- If you want to buy new products, register the products in the Products catalog.
You also have the following options:
- If you are planning to buy from new suppliers, register the suppliers in the Counterparties catalog.
After you determine which products to buy, you need to identify suppliers that meet your requirements and terms. To address this task, raise an RFQ and send it to potential suppliers.
As you receive potential suppliers’ responses to your RFQs, register the RFQ responses.
To choose the best offer, open the RFQ responses list and analyze the responses. 1C:Drive helps you quickly spot an RFQ response offering the lowest price. To learn more, see RFQ responses.
After you have chosen the best supplier’s offer, create a Purchase order based on the RFQ response of the chosen supplier. Then send the purchase order to the supplier. If you have set product cross-references, you can generate a purchase order print form with product names that your supplier can easily recognize.
To ensure that you receive ordered goods in time, do any of the following:
- Track purchase order statuses in the Monitoring purchase order statuses list.
- View reports such as Purchase orders statement or Purchase orders overview.
1C:Drive supports the following scenarios:
- Goods delivery before a supplier invoice
- Goods delivery together with a supplier invoice
- Goods delivery after a supplier invoice
If you receive the goods before a supplier invoice, do the following:
- Register a goods receipt.
Note. You can quickly generate a goods receipt based on a purchase order.
- Monitor goods received but not invoiced.
- Register a supplier invoice as you receive it.
Note. You can quickly generate a supplier invoice based on a goods receipt.
If you receive goods together with a supplier invoice, register the supplier invoice. As you do so, the stock level is increased. No need to register a goods receipt to confirm replenishment.
If you receive goods after a supplier invoice, do the following:
- Register a supplier invoice.
When you do so, select the Advance invoicing check box.
- Monitor goods invoiced but not received.
- As you receive goods, register a goods receipt.
Note. You can quickly generate a goods receipt based on a supplier invoice.
In any of the scenarios, you can match a supplier invoice to the related purchase order. This helps you track purchase order fulfillment.
To match a supplier invoice to a purchase order, do one of the following:
- Generate a supplier invoice based on a purchase order.
- When you register a supplier invoice, specify the source purchase order.
When you post a supplier invoice, the following accounting entries are registered on the GL accounts:
- Liability against a supplier
- Incurred expenses
- Purchased assets
If your business process requires, register a tax invoice. To learn more, see Tax invoice received.
If the received goods do not meet your requirements and you decide to return them to the supplier, register purchase return.
To pay for the received goods, do the following:
- Register a bank payment.
Note. You can quickly generate a bank payment based on a supplier invoice.
- Send the bank payment to your bank.
- As you receive the bank statement, mark the bank payment as Paid and post it.
When post a bank payment, in the following accounting entries are registered on the GL accounts:
- Liability is settled.
- Cash balance is updated.
The diagram below illustrates common steps of the procure-to-pay process.