P2P, or “procure-to-pay,” is an official business term used to refer to the process of acquiring goods and services from an external source. It is an end-to-end process that involves various steps, including vendor selection, purchase order creation, goods or services delivery, and invoice payment. The primary objective of P2P is to ensure that goods or services are acquired in an efficient and cost-effective manner. This process also helps to ensure that all company spending is tracked and accounted for.
The first step in the P2P process is vendor selection. This step involves researching potential vendors to determine the best one to meet the company’s needs. This includes assessing the quality of their products or services, delivery process, and pricing. Once the right vendor is selected, a purchase order must be created, specifying the goods or services to be