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Procure To Pay Vs Order To Cash

oboloo Glossary

Procure To Pay Vs Order To Cash

Its important to make a distinction between Procure to Pay (P2P) and Order to Cash (O2C) when it comes to managing business operations. Procure to Pay (P2P) is the process of purchasing goods and services from external vendors and then paying for them. It involves the procurement of goods and services, the negotiation of terms and conditions, the receipt of goods and services, and the payment of invoices. On the other hand, Order to Cash (O2C) is the process of receiving customer orders, fulfilling them, and collecting payment. It involves the receipt of customer orders, the fulfillment of orders, the invoicing of customers, and the collection of payments. Both processes are essential to running a successful business, but they have different goals and require different strategies. P2P focuses on obtaining goods and services at the best price and terms, while O2C focuses on providing customers with the best service and collecting payments on time. By understanding the differences between these two processes, businesses can better manage their operations and ensure their success.

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