What is p2p-Procure to Pay cycle?

P2P connects procurement through to payment of goods
The purchase to pay process, also known as the P2P process, connects the procurement and entire supply chain processes within a company through the goods receipt process, and finally to the payment issued to the vendor. Vendor Invoice or Supplier Bills are part of p2p cycle.

What is Vendor Invoices?

A vendor invoice from a purchase order is an invoice that is produced when products or services are received according to a purchase order that was placed with a vendor. The vendor invoice contains a header, and one or more lines for items or services. A vendor invoice completes the cycle from purchase order to product receipt to vendor invoice.

Although some vendor invoices are connected to a purchase order, vendor invoices can also contain lines that don't correspond to purchase order lines. You can also create vendor invoices that aren't associated with any purchase order. These vendor invoices might represent ongoing services, such as a utility bill, and you don't have to reference a purchase order when you add them.

Along with entry of Vendor Invoice Actual physical or electronics copy should be uloaded in system for Bill Passing by various departments and Audit Purpose.

It is compulsory in India to send Invoice with goods. So GRN and Inward Stock Entry is same as Vendor Invoice or Bill Entry. Single Entry Serves both the purpose. So system of seperate store entry is outdated. Infact Stores will now enter and upload scanned vendor invoices. Purchase will do Bill Passing and Accounts Payable team will do Payments.

What happens on approval of Vendor Invoices or Bill Passing?

If Products are received stock will be updated in selected store on approval of Vendor Invoice.
If Service is received then no stock entries are passed on approval of Vendor Invoice..
In Product or Service both cases Purchase Vouchers are Automatically Entered

All GST Reports also gets updated on approval of Vendor Invoice or Bill

What is 2-way, 3-way, 4-way Matching System of Bill Passing or Vendor Invoice Approvals?

2-way match is used to compare the invoice received from vendor with the Purchase Order. 3-way match is used to match the details of PO, Goods Receipt and the Invoice document received from vendor. In Three way match the Quantity & Price is matched between PO-Purchase Order, GR-Goods Receipr & IR/PI-Purchase Invoice/Supplier Invoice/Bill. In 4 way matching an invoice is matched to the corresponding purchase order for quantity and amount, receiving, and inspection information. You can set up price tolerance percentages for legal entities, vendors, and items. If the vendor invoice line price is not in the acceptable price tolerance, you can save the invoice until it is approved for posting, or until you receive a correction from the vendor.