The procure-to-pay cycle begins with needs recognition, the act of identifying what materials and supplies your company needs to operate. The various steps can be further explained as follows: Needs Recognition and Requisitions Creation Overall, the workflow still goes through the same three key stages for all. For instance, a brand new startup might only use a few steps while an international enterprise will add more to ensure compliance with international currency regulations. Some companies may have slightly different steps, possibly in a different order or with changed names, depending on the exact workflow of the procurement department. In short, most start with finding what you need to purchase and end with balancing accounts payable. Needs recognition to create requisitions.The individual P2P process flow steps are generally as follows: The main three procure-to-pay processes are categorized as being related to either purchase orders, receiving, or invoicing. It’s involved at the very start of the procurement process, which can lead to insights into your company’s buying habits to optimize cash-flow and improve the bottom line. In order to make accurate and timely payments, P2P covers more than just transferring funds.

A number of steps, determined by your company, cover the creation of requisition invoices along with the authorization of payment amounts for all your business-related goods and services.

Procure-to-pay, often written as P2P and occasionally called purchase-to-pay, refers to how payments are made during the procurement process.

Procure to pay processes