Procure to pay platformsĬonsidering the complexity of the procure to pay process in most companies, it's not surprising that some software vendors have attempted to develop what they claim are end-to-end suites that automate and integrate each step. There are often processes to inspect received goods, acknowledging their acceptance and entering them into inventory. Managerial approval is typically required at key decision points, such as before a PO is sent to a supplier or before payment is approved. Procurement might require the use of an approved catalog of products or involve the issuance of a request for quotation (RFQ). In practice, most organizations have many additional steps in each major phase of procure to pay. Finally, there is the payment side, which typically includes creating an invoice, arranging to pay suppliers and recording the transaction in the accounting system. The next steps involve receiving the good common documents created in this phase include an advanced shipping notice (ASN) and order confirmation. The main steps in procure to pay, starting with the procurement side, include, first, a requisition order - essentially, an internal request to purchase something - which starts the ordering process during which a purchase order (PO) is created. Procure to pay is also sometimes called purchase to pay. Procure to pay is often abbreviated as P2P, but it shouldn't be confused with, for example, peer-to-peer networking technology, which is also called P2P. It is a process, not a technology, though there is software expressly designed to handle the entire procure to pay process or components of it, such as invoicing, or related processes, such as inventory management and financial accounting. It gets its name from the ordered sequence of procurement and financial processes, starting with the first steps of procuring a good or service to the final steps involved in paying for it. Procure to pay is the process of requisitioning, purchasing, receiving, paying for and accounting for goods and services.
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