Procure-to-Pay (P2P)
Procure-to-Pay (P2P) is an end-to-end process that covers all activities from identifying needs and selecting suppliers to processing payments. This integrated approach connects procurement and accounts payable operations into a seamless workflow.
A complete P2P cycle typically includes:
- Requisition and approval management
- Purchase order creation and transmission
- Goods receipt and service acknowledgment
- Invoice matching and exception handling
- Payment processing and supplier reconciliation
- Reporting and analytics
Automated P2P solutions streamline operations by enforcing compliance with purchasing policies, eliminating paper-based processes, reducing processing costs, and capturing early payment discounts through accelerated cycle times.
Related Terms
Purchase Order (PO)
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