Frequently Asked Questions
What is Procure-to-Pay (P2P)?
Procure-to-Pay (P2P) is an end-to-end process that connects procurement and finance operations. It manages the full cycle from identifying purchase needs to making payments, ensuring efficiency, compliance, and cost savings.
How do I identify what needs to be purchased?
This step involves analyzing organizational requirements to determine which goods or services are necessary for operations. Proper identification ensures efficient procurement and avoids over- or under-purchasing.
What is involved in creating and approving purchase requests?
Users fill out purchase requisitions specifying items or services needed and obtain necessary approvals from authorized personnel to ensure compliance and budget control.
How are vendors selected and purchase orders issued?
Vendors are contacted using e-procurement tools or RFQs. After evaluation, purchase orders (POs) are generated for selected vendors to formalize procurement agreements.
How are goods received and invoices processed?
Received goods or services are verified against purchase orders for accuracy. The corresponding invoices are then processed and matched to ensure correct billing before approval for payment.
How does Procure-to-Pay improve efficiency and cost control?
By integrating procurement and finance, P2P increases transparency, reduces errors, ensures timely payments, and optimizes resource utilization. This alignment between departments improves operational workflows and cost management.