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Explain the procure-to-pay (P2P) and order-to-cash (O2C) cycles.

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Answer

P2P runs purchase requisition -> PO -> goods receipt -> invoice -> payment; O2C runs quote/order -> delivery -> invoice -> receipt. ERPs enforce three-way matching in P2P.
P2P: PO 1,000 + GRN 1,000 + Invoice 1,000 -> 3-way match -> pay
Real-world example Three-way matching in SAP stops payment of invoices without a matching receipt.
All 6 ERP Systems (SAP/Oracle) questions