ServiceNow Learning 176: What is Source to Pay Operations in ServiceNow in very layman terms?

[Shamma Negi]

Hi All,

Today we will cover what is an ideal S2P process given by ServiceNow Source to pay module.

1. Why to use ServiceNow source to pay module:

It automated the sourcing request wherein we request for any service to be fulfilled by suppliers/vendors/different teams till having the processing done by receipts. It allows you to fulfill any kind of sourcing request which could be as simple as "Requesting for an ethernet service/broadband connection".

2. What is a Sourcing Request?

In a very simple language Sourcing is a simple request for an service. E.g. I as a user or a company can request for a new ethernet connection or request for a new cafeteria vendor or request for bunch of chairs and desktops. For these services I will raise a sourcing request.

Usually, Sales team can come and raise a sourcing request for getting the required service to be fulfilled.

3. How Sourcing to Purchasing model can help us in solving the process and making it easier to track vi multiple components of Source to Pay application?

It allows focusing on creating a robust Supplier Data base which can come from any ERP Source like Oracle, Inglot etc.  With the help of this module you can raise a sourcing request which can go to an agent who can then decide the potential vendors based on the manual intervention or automated process via setting the automation based on product and service provided by vendors through Supplier Database (sn_fin_supplier)

4. What is the step-by-step process which is usually followed in Source to pay application from sourcing to procurement?

Process#1: Process of Sourcing to Procurement without NE(Negotiation Event)

Step#1: Creation of Sourcing Requests depending upon the quantity of service requested. We can create multiple sourcing as well based on the requirement. 

Step#2: Creation of Purchase Lines against the above sourcing request.

Step#3: Get the quotes and update in Purchase Lines and which then auto updates the Sourcing attached above.

Step#4: Once we update the NUP (Negotiated Unit Price) in PRL (Purchase lines) it auto creates the record in pricing table.

Step#5: It then creates the purchase requisition when our PRL goes to  state "Pricing Obtained".

Step#6: It also creates the draft contract.

Hope it helps you.

Stay tuned for information like this.

Thanks,

Shamma