Source-To-Pay Definition
Source-to-pay (S2P) is the process by which an organization procures and pays for goods and services. The S2P process includes all activities from identifying a need or opportunity to procure, through receipt and payment of invoices for the resulting goods or services.
The source-to-pay process typically involves the following steps:
1. Procurement planning: Establishing what goods or services are needed, when they are needed, and the budget for procurement.
2. Sourcing: Identifying potential suppliers of the goods or services needed.
3. Contract management: Negotiating contracts with selected suppliers.
4. Order management: Creating and managing purchase orders with suppliers.
5. Receipt and acceptance: Receiving goods or services from suppliers and ensuring that they meet quality standards.
6. Invoice processing: Generating invoices from suppliers and ensuring that they are accurate.
