The purchase to pay process, also known as the P2P process, is the process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services, covering the entire process from point of order right through to payment.
P2P brings together the procurement function with the accounts payable department, and connects the entire supply chain processes within a company through the goods receipt process, and finally to the payment issued to the vendor.
The entire P2P process consists of many individual processes that take place across different parts of the organisation and involve multiple people. This introduces complexity and, at times, confusion, especially when the process is manual and paper based.
For companies of all sizes, optimizing the P2P process can reduce overall supply chain and inventory costs, increase transparency within your organization and improve the communication with the vendors. This process is foundational to the financial health and overall competitive strength of a business.
If the P2P process is manual, it takes more time and effort and opens the door to human error. Removing manual processes throughout the P2P process will result in better process efficiency and cost savings.
The P2P process itself can be broken into three main sub-processes:
The Purchase Order Process:
- Purchase requisitions creation and approval
- Vendor evaluation and selection
- Purchase order issuance
- Supplier PO acknowledgement
The Receiving Process:
- Goods and services are received or executed
- Receiving documents are reviewed and logged.
The Invoice Approval Process:
- Invoices are received and invoice processing completed.
- Invoices are reconciled and cross-checked with the original PO and goods receipts or receiving documents
- Approved invoices are paid.
NotifyMe P2P software solution allows users to digitalize and automate the entire P2P process or parts of it, increasing efficiency and minimising potential errors. This helps increase transparency throughout the organization and the supply chain, and reduce overall costs.
Our P2P Management workflows are developed on the ColFlow TM Collaborative Workflow Engine and can be customized with the support of our Business Process Optimization team.