Procure to Pay — Requisition to Supplier Payment

Who / when: a Procurement Officer raising a purchase, a Store Manager receiving the goods, an Accounts-Payable Clerk matching and paying the bill, and the Finance Officer who sees it all in the books. This is the full “procure to pay” cycle, and it crosses three modules — Procurement, Stock, and Finance — that share one general ledger.

Terms used here: a requisition is an internal request to buy; an RFQ (Request for Quotation) asks suppliers to price it; a PO (Purchase Order) is the firm order; a GRN (Goods Receipt Note) records that goods physically arrived; the three-way match compares what was ordered, received and invoiced before paying; AP (Accounts Payable) is money owed to suppliers; GRNI (Goods-Received-Not-Invoiced) is the accrual that bridges receipt and invoice; debit (Dr) / credit (Cr) are the two sides of every ledger entry. No money moves until goods are received.

1. Procurement Officer — open Procurement → Requisitions and raise a requisition (items, quantities, estimated cost, cost center, needed-by). Submit it; under the approval threshold it auto-approves, otherwise it waits for an approver. No ledger entry — a request is not a financial event.
2. Procurement Officer — either Convert to PO straight from the approved requisition, or run Procurement → RFQs to invite suppliers, compare their quotations side by side, and Award the best — both raise a Purchase Order on the chosen supplier. Still no ledger entry — a commitment, not a cost.
3. Store Manager — when the goods arrive, open Stock → Goods Receipt and receive against the PO. Veona creates the stock lots and posts the first ledger entry: Dr Stock-in-Hand / Cr GRNI for the received value. Inventory is now on the balance sheet.
4. (optional) Store Manager — if freight, duty or clearing applies, open Procurement → Landed Cost, attach the charges to that receipt and Apply — the lot values rise (Dr Stock-in-Hand / Cr GRNI) so stock is valued at its true delivered cost.
5. AP Clerk — open Procurement → Purchase Invoices and create the invoice from the goods receipt. The three-way match grid shows, per item, Ordered vs Received vs Invoiced — each line reads Matched, Flagged or Blocked. (A foreign-currency bill carries its own currency and exchange rate.)
6. AP Clerk — Submit the invoice. A Blocked match cannot post; a Flagged one needs an override reason. On submit the ledger records Dr GRNI (clearing the receipt accrual) + Dr Purchase-Price-Variance (any price difference) + Dr Input-VAT / Cr Accounts Payable (party = the supplier). GRNI now nets toward zero for that PO.
7. AP Clerk — open Procurement → Supplier Payments, pick the supplier, choose the cash or bank account, and allocate the payment across open bills. The ledger posts Dr Accounts Payable / Cr Cash-Bank. If the payment currency’s rate differs from the rate the bill was booked at, Veona also books the realized exchange gain or loss.

What happens next: the supplier’s payable is settled, the stock is valued and available to issue, and every figure — Stock-in-Hand, GRNI, Accounts Payable, the bank movement — sits in the one general ledger, so the Balance Sheet, Trial Balance and Cash Flow reflect it live. A short return to the supplier (a debit note) reverses Dr Accounts Payable / Cr GRNI and decrements the lot. See Procurement and One Set of Books for the detail.

Note

GRNI is the hinge. The goods receipt credits it, the purchase invoice debits it — so once a PO is fully received and invoiced, GRNI nets to zero. Account names (Stock-in-Hand, GRNI, Accounts Payable, Input-VAT, Exchange Gain/Loss) must be mapped under Finance & Ledger → Finance Settings, or the operational steps still succeed but the ledger postings are skipped until you map them.