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.