Managing the Procure to Pay Process

Improving the Procure to Pay (“P2P”) system involves automation of all transactional activities associated with the thread of events that occurs from the time of buying a good or service, through the release mechanism, to the point of issuing payment, including:

• Requisitioning

• RFX

• Contract award

• Orders

• Approval

• Receipt

• Payment

Covered in more detail in this chapter, P2P process improvement is associated with establishing controls on the front end of this process to minimize the need to monitor the back end and drive efficiencies, which free resources to work on strategic initiatives. An effective P2P system ensures automated capture of clean, usable spend, invoice, performance, and Accounts Payable / General Ledger data as input into future spend analysis, demand management, commodity strategy development, and cost management activities.