What Is A Procure To Pay Solution?

As its name suggests, a procure-to-pay - or P2P - solution is a digital system designed to manage and facilitate the purchase-to-pay process. It is a complete end-to-end tool that enables organizations to procure goods and services efficiently and effectively.

How It Works

Within the scope of procure-to-pay are a number of different procurement software applications and tools that work together to make the purchasing process as streamlined as possible. These include the following.

Purchase Requisition Solution

Purchase requisition refers to the process and slew of steps organizations undergo when looking to make a purchase. It encompasses everything from the creation of the request itself to the delivery of the products ordered, and  everything in between. A purchase requisition solution is a software application that helps automate and manage this process from start to finish. They do this by digitizing and automating tasks like obtaining approvals, dispatching PRs to the procurement team and tracking progress.

Purchase Order Solution

As many business leaders already know, a purchase order is a type of document organizations create when they are looking to buy and acquire goods. They contain details like the type of product being ordered, the quantity, the price and more.

Purchase order software solutions support organizations in processing their purchase requisitions, creating purchase orders, obtaining PO approvals, and dispatching POs to their appropriate vendors. A purchase order solution makes it possible to issue POs and generate automatic orders for approved purchase requests, as well as track the status of a PO throughout the P2P cycle.

Examples of what  a purchase order solution can do for your organization include:

• Automatically generate a purchase order based on an approved requisition
• Help you keep track of what’s been ordered and what hasn’t
• Make it easy to reorder goods
• Manage order status
• Ensure that you always have up-to-date records of your POs

Invoice Management

Invoice management refers to an internal business function in which organizations manage and process invoice documents from suppliers and vendors. This process includes everything from matching invoices to purchase orders and contracts, to getting invoices approved, to making payments on time.

An invoice management solution is a software application that helps automate and streamline the entire invoice management process. This includes tasks like issuing payments, tracking invoices, managing invoice approvals and more. Invoice management tools also enable users to easily conduct three-way-matching - a best practice in accounts payable that ensures that the goods or services received match the purchase order and contract.

The Benefits Of A Procure-To-Pay Solution

There are many benefits associated with using a procure-to-pay solution. While every business will  experience different results, some of the most common benefits reported by users include:

Reduced Costs

One of the biggest advantages of using a procure-to-pay solution is that it can help reduce costs associated with the procurement process. This could manifest in a number of different ways, but some examples include reduced late  payment fees, early payment discounts and improved supplier relations.

Increased Efficiency

A P2P solution can help increase efficiency in a number of ways. For example, by automating tasks like purchase requisition, purchase order and invoice management, it frees up time for employees to focus on more strategic tasks. P2P automation is also valuable because it reduces the likelihood of errors and delays.

Improved Visibility

Another benefit of using P2P software is that it can help improve visibility into organizational spending. This is because P2P solutions offer robust reporting and analytics capabilities that help users track spending, identify trends and uncover areas for improvement. This increased visibility can ultimately lead to more informed decision-making around organizational procurement.

Greater Control

In addition to improved visibility, a P2P solution can also help give organizations greater control over their spending. This is because P2P solutions offer a number of features and capabilities that help organizations set organizational purchasing software policies and controls. For example, many P2P solutions offer approval workflows that help ensure that all purchases are made in accordance with organizational policy.

AP Automation

Another key benefit of using a procure-to-pay solution is that it can help organizations automate their accounts payable processes. AP automation refers to the use of technology to streamline and automate the invoicing process - from receipt and approval, to payment. AP automation can help improve efficiency, reduce costs and improve visibility into organizational spending.

Procure-to-pay solutions are available from a variety of vendors, and they can be tailored to the specific needs of your organization. When choosing a procurement solution, it is important to consider your organization's specific requirements, such as the size of your company, the types of products and services you purchase, and your budget. ControlHub has  helped many organizations streamline and automate their procure-to-pay processes, and we would be happy to help you find the right solution for your business. Contact us today to learn more.