Procure To Pay
- Home
- /
- Global Finance & Accounting Services
- /
- Procure To Pay
PROCURE TO PAY P2P
Procure-to-pay is a term that encompasses the processes which take place when a company purchases, receives, and pays for goods and services. The activities that make up the procure-to-pay process range from identifying the initial need for procurement of goods or services, to the final steps of approving invoices and paying suppliers.
Under P2P we cover the following processes:
01
Need Identification
The first step of a procure-to-pay process is to determine and define the business requirements with the help of cross-functional stakeholders. Once a valid need is identified, procurement teams detail out high-level specifications for goods/products and terms of procurement.
02
Create Requisitions
A formal purchase requisition is created. A requester submits the filled-out purchase requisition form after ensuring that all necessary company requirements are met
03
Purchase Requisition Approvals
Submitted purchase requisitions are then reviewed by department heads or procurement officers. Approvers can either approve or reject a purchase requisition after evaluating the need, verifying the available budget, and validating the purchase requisition form. Incomplete purchase requisitions are rejected back to the initiator for correction and resubmission.
04
Creation Of Purchase Order
A formal purchase order is created and submitted.
05
Goods Receipt
Once the supplier delivers the promised goods/services, the buyer inspects the delivered products or services to ensure that it complies with the contract terms. The goods receipt is then approved or rejected based on the standards specified in the purchasing contract or purchase order.
06
Invoice Approval
Once a goods receipt is approved, a three-way match between the purchase order, the vendor invoice, and the goods receipt is performed. If there are no discrepancies found, the invoice is approved and forwarded to the finance team for payment disbursement. In the case of inaccuracies, the invoice is rejected back to the vendor with a reason for rejection.
07
Supplier Payment
Upon receiving an approved invoice, the finance team will process payments according to the contract terms.
Talk to us
Reach out to us for personalized accounting solutions!
THANK YOU!
We appreciate your interest in Elixir. A member of our team will reach out shortly to set up a time to speak to learn more about your needs.
