Procure-to-pay

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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.

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.