The official business definition of Procure To Pay (P2P) is a process that encompasses all activities from the purchase of goods and services to the payment of invoices. It is a critical component of an organization’s financial management system and is designed to ensure that the procurement process is efficient, cost-effective, and compliant with applicable laws and regulations. The P2P process begins with the identification of the need for goods or services and ends with the payment of the invoice. Along the way, it involves activities such as creating a purchase order, obtaining quotes, selecting a supplier, receiving goods and services, and verifying the accuracy of the invoice. It also includes the processing of invoices and payments, and the reconciliation of accounts. The P2P process is designed to ensure that the organization is getting the best value for its money and that the procurement process is being conducted in a manner that is compliant with applicable laws and regulations.
