Purchase To Pay Automation Definition
Automation in purchasing and payables has revolutionized the way businesses operate. By automating the purchase-to-pay process, businesses can streamline their operations, improve efficiencies, and save time and money.
So what is purchase-to-pay automation? Put simply, it’s the automation of the entire procure-to-pay process – from requisition to receipt of goods or services. This means that all aspects of the process are automated, including:
• Creating and approving purchase orders
• Managing supplier invoices and payments
• Reconciling supplier statements
• Generating reports on spending trends and supplier performance
With purchase-to-pay automation, businesses can enjoy a number of benefits, including:
• Reduced processing time and costs: Automating the procure-to-pay process can help businesses save time and money by reducing manual processing time and eliminating errors. In fact, one study found that automating the process can lead to cost savings of up to 80%. Another study found that automating accounts payable can result in cost savings of up to 30%.
• Improved efficiency and productivity: By automating repetitive tasks, businesses can free up employees’ time so they can focus on more value-added activities. This can lead to improved efficiency and productivity across the organization. Additionally, automating the procure-to-pay process can help businesses avoid late payments and interest charges.
