Procure To Pay Process Definition
Purchasing goods and services is only the beginning of the procure-to-pay process. your organization also needs to track payments, manage vendor contracts, and control costs. The procure-to-pay process encompasses all of these activities.
Procurement is the process of acquiring goods and services. It includes identifying and selecting vendors, negotiating prices and terms, and placing orders. Once an order is placed, it’s time to pay the vendor.
Payment management is the process of issuing payments and managing payment disputes. It includes processing invoices, issuing payments, and resolving payment disputes.
Vendor contract management is the process of creating, maintaining, and renewing contracts with vendors. It includes negotiating contract terms, monitoring compliance with contract terms, and renewing or terminating contracts as needed.
Cost control is the process of managing organizational spending. It includes setting budgets, tracking expenses, and reducing or eliminating unnecessary spending.
