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What is P2P or purchase-to-pay?

P2P is the acronym for procure-to-pay or purchase-to-pay. The P2P process covers activities performed to obtain and manage materials required for manufacturing a product or providing a service. It involves the transactional flow of data with the supplier from the point of order right up to the point of fulfillment of the actual order and payment for the product or service.

In Recent Years, Businesses have Carefully Examined their P2P Processes to:

  • Lessen general inventory and supply chain expenses
  • Liberate required cash
  • Enhance functional performance
  • Take improved monetary judgments

In addition, enhancing the purchase-to-pay procedure can add visibility that gives the management a chance to have more satisfactory communication with the dealer regarding where the articles are in the delivery cycle and revenue to the dealer.

Components of the Procure-to-Pay Process

Many factors are related to the P2P method, which is essential to the overall procedure. The procedure starts with sourcing items and ends with payment to the selected vendor.

Step 1: Identify needs

Step 2: Create requisitions

Step 3: Purchase requisition approval

Step 4: Create a PO/spot buy

Step 5: Purchase order approval

Step 6: Goods Receipt

Step 7: Supplier Performance

Step 8: Invoice Approval

Step 9: Vendor Payment

P2P Software

GEP delivers end-to-end P2P solutions which seek to automate the entire P2P process. In addition, companies can use invoice automation solutions to streamline invoice data capture, reduce the risk of errors and automate accounts payable processes.

Vendors can also take measures to decrease the chance of mistakes or delays on the invoices they send to their consumers by taking advantage of electronic invoicing solutions, which assure invoices are sent to the correct place and in the correct format.

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