Does your business have a Procure to Pay Process?
Ariba states “Procure-to-pay (p2p) is the process of integrating purchasing and accounts payable systems to create greater efficiencies.
It exists within the larger procurement management process and involves four key stages:
- selecting goods and services
- enforcing compliance and order
- receiving and reconciliation
- invoicing and payment.
Kiss Flow puts it another way : “Procure to pay is the process coordinated and integrated action taken to fulfill a requirement for goods or services in a timely manner at a reasonable price.
It involves a number of sequential stages, ranging from need identification to invoice approval and vendor payment. Steps in a procure-to-pay process need to be executed in a strict order.”
The Procure to Pay Process is one of the most common business processes written and every enterprise involved in goods and services would or should have this process.
Without a valid Procure to Pay Process your business risks errors and possible financial losses.
The SAP Blog has a more detailed explanation (with a full 18 Steps for Enterprise level) stating “All enterprises and corporate aspire to improve their bottom line.
Basically, there are two ways to do it, either to increase the top line or reducing the cost.
Increasing the top line or the revenues in today’s competitive markets is not a very easy option.
That’s why, now a day’s the sourcing and procurement functions are being examined, by the companies, in order to find ways to cut costs and control spending.”
If your business doesn’t have a Procure to Pay Process OR it needs updating, as your systems have changed Contact Us.