Procure to pay is the process of managing all the procurement tasks by purchasing to vendor payments.
This term is also known as purchase to pay and is used in the software industry to select the particular subdivision of the procurement process. Procure-to-pay systems are also termed as P2P and are also sometimes called purchase to pay.
FUNCTIONS OF PROCURE TO PAY SYSTEMS
These procure-to-pay systems empower the integration of the purchasing unit by accounts payable departments.
common steps of procuring to pay systems
these steps commonly include
- Transport and takeover
- Supply administration
- Reservation order
- Bill settlement
- Accounts due
Just like source-to-pay systems, procure-to-pay does not include the sourcing function. This system relates to supply chain management.
Advantages of procure to pay systems
this system is specially designed to provide firm with the visibility or control over the entire cycle of transaction. In addition to this, it also provides insight into cash-flow and commercial commitments.
These procure-to-pay (P2P) systems are generally used by most of the companies to centralize their procurement departments.
Cons of P2P systems
as with any system that reached a significant number of users, executing these procure-to-pay systems requires some knowledge of as-is business as well as to-be.
Commerce does not give sufficient information to support decision-making.
Customization of ERP which may lead to abnormal entries
Lack of ERP knowledge
Absence of multiple, limited systems supporting the process.
Quality and data governance are inadequate.
Management of procure to pay systems
This system manages all the procurement activities, from purchasing to payments. It is usually delivered as a mixture of multiple solutions or as standalone software. One may also use this software through online portals. One of the biggest benefits of integrated procure to pay suites is their ability to handle the data, allowing the process to spend management to get more control over expenses.
Procure to pay cycle
Procure to pay cycle includes how a department or a company works about procuring goods and services. paying for, receiving goods, and accounting for these services.
This cycle is followed by any organization in any ERP if they like to purchase any product. This procure-to-pay system makes your spending easier, insight into your expenditures, and boosts your compliance.
This digital procurement process removes all the needs of manual processing and raises your purchase order, creating a good recipient and invoice. It is that simple and can save you time and money.
Top 10 procure to pay software
- SAP Ariba
- Oracle EPM cloud
- MHC software
These software’s are specifically designed to handle the entire procure-to-pay process or components of it. So if you want to make your procurement easier and faster, must consider procure to pay systems.