Procure To Pay Definition
The procure to pay process is the cycle of activities that a company undertakes to source, procure, and pay for goods and services. The cycle begins when a company identifies a need for goods or services and ends when it pays its supplier.
In between, there are a number of steps that must be undertaken to ensure that the company gets the best value for its money and that the supplier delivers the goods or services as agreed. These steps include:
1. Sourcing: Identifying potential suppliers and request quotes or bids.
2. Procurement: Negotiating contracts with suppliers and placing orders.
3. Receiving: Receiving goods or services from suppliers.
4. Payments: Processing payments to suppliers.
