Purchase to Pay is a subset of Procure to Pay that deals with the requisition, purchasing, receiving, and payment for goods, services, or work. It is an automated and often web based process that captures and controls financial commitments (such as purchase orders, capital, credit cards, and reimbursable spending) in advance of invoice and accounts payable.
How is Purchase to Pay (P2P) different from Procure to Pay?
Purchase to Pay basically refers to the technologies that support the process of procurement (especially e-procurement).
Purchase to Pay is a way of streamlining the Procure to Pay process by bringing together the purchasing department and the accounts payable of a company through enterprise resource planning (ERP) modules and other procurement and business management software.
What are the benefits of Purchase to Pay?
There are many reasons to implement the Purchase to Pay solution. The close collaboration between formerly separate departments in your company makes collated reporting and comprehensive auditing more intelligent, especially when using online purchase order software like Purchase Control.
Breaking it down.
The automation of the procurement process and reconciling purchasing, receiving, and payment reduces cost to your company and increases accuracy.
Both hands on the wheel
The ability to view cash flow across the whole organization and the ability to control compliance with requisition and procurement policy through built-in authorizations in the purchase order software curtails unnecessary waste.
Purchase to pay offers the potential for insight into the relationship of your company to a vendor through single supplier reporting.
Due to the capacity for comprehensive reporting and early payment, the purchase to pay solution can build close relationships with vendors, lowering the cost of financial commitments with dynamic discounting.
Purchase Control makes the P2P process simple to implement for your company and easy to use with our Cloud based procurement software.