Procure-To-Pay (P2P)

Procure-to-pay, or ‘P2P’, is a term used to describe the process of procuring goods or services and then paying for them. The procure-to-pay process typically involves four main steps: requisition, purchase order, receipt, and invoice.

The requisition step is when a user creates a requisition form that includes the necessary information about the item or service being requested. This form is then sent to a procurement department for approval.

The purchase order step is when the procurement department issues a purchase order to the supplier. This purchase order includes all of the information from the requisition form as well as any additional instructions from the procurement department.

The receipt step is when the goods or services are received by the buyer. The buyer should inspect the goods or services to ensure that they meet the requirements specified in the purchase order.

The invoice step is when the supplier sends an invoice to the buyer for payment. The buyer should review the invoice to make sure that all charges are correct and then make payment according to their agreed upon terms with the supplier.