Procure-to-Pay Process Explained

The secret to effective, agile, automated P2P
Book a P2P demo

What is Purchase-to-Pay?

Purchase-to-Pay is made up of a number of stages that describe the end-to-end buying process, from initial request and purchase through to invoicing and payment for good/services received. By simplifying these processes, you can take a big step towards your digital transformation goals.
 
The class of software systems that have come into being in recent years to address this important cycle is generally referred to as Purchase-to-Pay or Procure-to-Pay software systems – P2P systems for short.
P2P systems consist of a number essential components:
Procurement
 
software einkauf beschaffung
Take your 
purchasing to 
the next level

Learn more


Budget
Management
kreditorenbuchhaltung lösungen
Make smarter decisions 
based on real-time 
budget information

Learn more


Accounts Payable
Automation
rechnungsverwaltung lösungen
Future-proof Accounts 
Payable , paper- and 
resource-free

Learn more


Early
payments
lösungen für das ausgabenmanagement
Additional financial benefits, 
cash generation and great 
supplier relationships

Learn more
Find out why P2P is the centerpiece to the Source-to-Pay process and how it can enable value across it all:

This guide makes the case that the route to maximum agility across Source-to-Pay sits with P2P as the ‘strategic linchpin’ - covering the key objectives in finance transformational projects:

  • Visibility and control of cost against budgets.
  • Visibility of spend through commitment account.
  • Better cashflow management.
  • Maximum efficiency of spend management processes.
  • Effective use of employee time.
  • Optimized invoice processing.
  • Maximizing the value created by procurement.
  • Minimizing fraud and risk across the supply-chain.
Download now
Transforming P2P into a strategic spend management linchpin
With these components integrated into a single P2P software system, the entire process becomes automated, collaborative and streamlined:
e sourcing lösung
Requisitioning, approval, ordering and receiving, while preventing unauthorised purchases and maintain control.


strategisches sourcing software
Real-time insight into budgets with clear dashboards and reports for complete budget control.


strategisches sourcing systeme
Automated invoice registration, validation, matching and payment approval for PO and non-PO invoices.


How to achieve an effective, agile and automated P2P process

A good P2P software solution will provide automation - an electronic system that allows employees throughout the company to browse supplier sources such as catalogs and websites online to find, then purchase or request, the item or service they need from an approved supplier.

The purchase request will be compared to corporate rules based on who is making the request, the cost, the spend category, and other criteria. For approval it will electronically route the request to the right manager. POs will automatically be placed for approved requests. When the invoice arrives, it will be electronically matched against what was ordered and received, and against applicable contract terms.

The best P2P systems process the great majority of invoices “straight-through”, while automatically initiating workflow-based resolution of any exceptions. Once authorized, invoices are passed to your Accounts Payable function for payment.

Learn how Wigan Council achieved 66% processing cost savings by centralizing its AP function and automating P2P.
 
Improving your existing P2P processes may seem daunting, but by identifying where saving opportunities lie within your organization and employing a modular approach to automation, you can focus efforts on where you have the most immediate need.

Download this guide for a practical way to get started in the pursuit of P2P process optimization.

Our experts will guide you through our solution and answer all of your questions.