Purchase To Pay Process Definition
Assuming you are referring to a business process, the purchase to pay process (P2P) is the cycle of activities associated with procuring goods or services, paying for them, and then accounting for and managing any resulting contracts.
The P2P process typically begins when a requisitioner submits a request for goods or services. This request is then routed through an approval process to ensure that it complies with organizational guidelines and budget restrictions. Once approved, the requisition is converted into a purchase order and sent to the supplier.
When the supplier delivers the goods or services, they will send an invoice to the organization. The organization will then review the invoice to make sure that it matches the purchase order and that there are no errors. Once approved, the organization will pay the invoice according to their agreed-upon payment terms.
Finally, the organization will need to track and manage any resulting contracts from the purchase. This includes ensuring that all contractually obligated deliverables are met, as well as maintaining records of performance in case there are future disputes.
