Every business owner or process participants, understanding the procure-to-pay process and the automated solutions that may assist in its administration is crucial. When a product or service is ordered, your procurement and accounts payable departments should be able to track its progress at any moment until payment has been received. Simply put, this is the procedure by which a request is made, an order is placed, and payment is made, relying on an invoice from the provider once the order has been received. P2P refers to an autonomous system that connects procurement and accounts payable to expedite the process, maintain reliability, and achieve efficiencies in both time and money. The global market for procure-to-pay (P2P) outsourcing expanded at a CAGR of 15.77% between 2016 and 2020.

Major Steps In The Procure-to-Pay Process

Request For Purchase

The procurement department receives a request for a specific product or service after it has been authorized by management. To put it another way, P2P begins with a requisition and is then handled by the Top Procure To Pay Platform.

Purchase Order

Before making a selection, procurement departments will review their approved supplier list and use the request data to find the most suitable vendor. Purchase orders are created in the procurement system, which is then automatically forwarded for approval and sent to the vendor.

Acknowledgment of A Transaction

If products are sent, or services are completed, an invoice will be sent to accounts payable by the supplier. After procurement receives the package, they will enter the shipping details into the system.


The procurement department has taken care of all of the preceding processes; now, the cash management department comes in. Depending on the procurement system software price, invoices can be issued electronically through the service portal or through email.

If the supplier does not use electronic invoices, invoices are scanned and converted to electronic format utilizing double-blind keying technology and appropriate data extraction, standardization, and conversion.

Invoice Matching

As soon as a PO and receipt of goods are received, an e-invoice is instantly generated to match. As long as all goods fall within the agreed-upon limits, the invoice is immediately forwarded for approval. This is known as two- or three-way matching, which is a crucial part of any P2P network.

The Approval Process

Using an automated P2P system, invoices that pass a two-way or three-way match are automatically sent to the ERP for payment. A workflow system for invoice approval can automate this procedure.

Those invoices will be sent to the appropriate individuals, and an alert will be sent to them if extra signatures are required because of the restrictions in place. Then, these invoices will be automatically entered into the ERP system for payment.


Different companies have different payment options. Even though we believe that payment systems like ACH and virtual credit cards are the most convenient and cost-effective methods to pay suppliers, many businesses still use paper checks and cash. A procurement-to-pay system should have an e-payables feature, although a corporation can still choose not to utilize it.

Summary :

Your bottom line will suffer if you use manual procedures in your payment systems and buying operations. Your procurement and accounts departments will profit significantly from automating their purchasing and payment operations via P2P.