While delivering the goods, vendors specify the GRN containing details such as delivery timelines and product details. Once the vendor is chosen, the procurement team releases a purchase order containing details on the description of goods/services, department account number, signatures of the designated authority, the quotation from the chosen vendor, and delivery instructions. Once the purchase requisition is formally approved, the procurement team hunts for the right vendor to fulfill the requisition based on criteria like delivery timelines, credit period, service quality, etc. The vendor is chosen based on the type of goods or services required by the organization. The department that requires goods or services raises a purchase requisition containing details on the type and quantity of goods needed. The outline of the procure-to-pay cycle is given below: Purchase requisition:Ī purchase requisition is submitted to procure goods or services for the organization.
Policies and procedures that govern purchases and spending patterns are included in the P2P system. The main intent of a P2P procurement process is to track the purchasing behavior of the organizations and how they pay for the costs incurred. The procure-to-pay cycle involves all the activities required to complete an order. Procure-to-pay or p2p solutions help organizations inquire, request, receive, and then pay for goods and services. procure-to-pay solutions are part of the larger procurement management process. The procure-to-pay process flow integrates purchasing and accounts payable systems for greater efficiencies.
The procure-to-pay process is also referred to as the purchase-to-pay process. The Procure-to-Pay (P2P) process is that part of the procurement cycle excluding the sourcing process. The procure-to-pay process provides organizations control and visibility over the entire procurement process, cash flow, and financial commitments. The procure-to-pay process starts once sourcing is complete. The procurement process begins when a purchase requisition is submitted for the requirement of goods or services. What is Procure-to-Pay (P2P)? – Solutions & Process and Flow
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