1. ERP:

  ERP is a software that can efficiently manages all the essential business processes in an integrated system. ERP is a system to store and integrate the data in a single platform..

2. Materials Management:
    Material Management deals with planning organizing and controlling the flow of materials which provides right material, right quantity on right time.

3. P2P cycle: 

a. Definition:
Procurement means complete process of purchasing some materials or services from vendor external or getting it from some plant in case of internal procurement as per the requirement.

b. Determination of requirements: 
In a company departments like HR, Admin, production etc. will create purchase requestions with list of required materials. 
Once PR is approved by consulted managers, it will be send to purchasing department  
Purchase department will check the availability of approved list of vendors which are available at source list for the material and they create a purchase order to vendor.

c. Source determination process:
If vendor is not available then purchase department will send the quotations to different vendors and select the vendor as per the quotation comparison process. .

d. PO Handling process:
Once the PO is sent to the vendor, goods will be send by the vendor as per the delivery date.
  
e. Goods receipt:
Stores department will receive the goods from the vendor.

f. Invoice verification step: 
The invoice which is sent by the vendor along with the goods will verified in the system by accounts department.  

g. Payment:
Payment will be done as per the verified amount.