Procure-to-pay
Specific subdivision of the procurement process / From Wikipedia, the free encyclopedia
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Procure-to-pay (also known as Purchase to Pay (P2P)) is a term used in the software industry to designate a specific subdivision of the procurement process.
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The P2P systems enable the integration of the purchasing department with the accounts payable (AP) department. Some of the largest players of the software industry agree on a common definition of procure-to-pay, linking the procurement process and financial department. The steps usually included are:
- Supply management
- Cart or requisition
- Purchase order
- Receiving
- Invoice reconciliation
- Accounts payable
Unlike source-to-pay systems, procure-to-pay systems do not include the function of sourcing. Also, notions of production planning and forecasting are excluded from this definition since it relates to the supply chain management.