Procure to Cash (P2C) is a business process that describes the end-to-end flow of goods and services from the moment of purchase to the final payment. It is a key component of a company’s supply chain management, and involves the coordination of activities between procurement, accounts payable, accounts receivable, and treasury departments. The goal of the process is to ensure that goods and services are acquired in a timely and cost-effective manner, and that payment is received in a timely and efficient manner. This process is also known as Source to Pay, Purchase to Pay, or Procure to Pay.

The Procure to Cash process begins with the identification of a need for goods or services, followed by the selection of a supplier. The supplier is then contacted to negotiate the terms of the purchase, including the price, delivery schedule, and payment terms. Once the terms are agreed upon, the order is placed and the goods or services are delivered. The supplier then invoices the company for the goods or services, and the accounts payable department verifies the invoice and pays the supplier. The accounts receivable department then records the payment and sends an invoice to the customer. Finally, the customer pays the invoice, and the accounts receivable department records the payment.

The Procure to Cash process is an important part of any business, as it ensures that goods and services are acquired in a timely and cost-effective manner, and that payment is received in a timely and efficient manner. By streamlining the process, companies can reduce costs, improve customer service, and increase profitability.