The typical procure-to-pay process includes these steps, which are best managed by procure-to-pay software.
- Purchase Requisition and Vendor Selection: P2P starts with a purchase requisition specifying the type and quantity of goods required. Once approved, the procurement team selects a vendor.
- Purchase Order: The purchasing department sends a purchase order to the selected order to fulfill the requisition.
- Order Confirmation: Vendors have to acknowledge receipt of the purchase order and advise your company of expected shipment dates and turnaround times.
- Delivery Notification: Delivery happens when the goods arrive. You need to compare delivered goods or services against the purchase requirements.
- Invoice Payment and Remittance: The vendor sends an invoice, and you have to reconcile the invoice, delivery receipt, and original purchase order. Once confirmed, you have to remit the payment to the vendor and close the transaction.
Manual procure-to-pay is a time-consuming process, so companies implement procure-to-pay automation for greater efficiency.
Find out how to take the next steps in automation for your business through Apruve.