Le procure to pay (P2P) model is a fundamental process in any business that manages purchasing and supplier payments. While it sounds straightforward — you buy something and then you pay for it — the actual flow is more complex, especially when managing multiple suppliers, approvals, and compliance checks.
Let’s break down how the procure to pay model works and how it connects to your broader order to cash cycle.
How does the Procure to Pay Model work?
1. It Starts with a Need
The procure to pay process begins when a department identifies a need — whether that’s raw materials, office supplies, or services. A purchase requisition is created and submitted for internal approval.
2. Creating and Approving the Purchase Order
Once approved, a purchase order (PO) is generated and sent to the supplier. This outlines the agreed terms, quantities, and pricing — a crucial step of the P2P model to ensure all parties are aligned.
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3. Receiving the Goods or Services
When the supplier fulfils the order, the business receives the goods or services. This stage may involve a goods receipt note (GRN), confirming delivery and quality. This is where businesses begin tracking what was ordered versus what was received — often the first point where issues like short deliveries or delays are flagged.
4. Invoice Matching and Validation
The supplier sends an invoice, which is then matched against the PO and GRN to ensure accuracy — this is known as three-way matching. Automating this step of the procure to pay model helps reduce errors, detect discrepancies early, and accelerate the payment cycle.
5. Payment Scheduling
Once the invoice is validated, it enters the accounts payable process. Depending on terms, payments may be scheduled to maximise cash flow — including strategies like dynamic discounting to take advantage of early payment discounts.
Why the Procure to Pay Model Matters
A well-managed P2P process can reduce costs, eliminate maverick spend, ensure regulatory compliance, and strengthen supplier relationships. But more than that, it sets the foundation for your order to cash cycle — by making procurement more predictable and financially aligned.
How to get the most out of the Procure to Pay model
At B2BE, we help businesses automate the full procure to pay workflow — from purchase order generation to invoice processing and payment. Our integrated Solutions Procure to Pay improve visibility, reduce delays, and eliminate manual bottlenecks that can drag out the cycle.
Want to streamline your procure to pay process? We can help you automate each step and create more value from your supply chain. Contact us to find out more.
À propos de B2BE
B2BE fournit des solutions électroniques pour la chaîne d'approvisionnement à l'échelle mondiale, aidant les organisations à mieux gérer leurs processus de chaîne d'approvisionnement, en fournissant des niveaux plus élevés de visibilité, d'auditabilité et de contrôle. Nous sommes animés par une passion pour ce que nous faisons, inspirés par l'innovation et soutenus par une richesse de connaissances. Avec plus de 20 ans d'expérience, les équipes de B2BE opèrent dans le monde entier.
Pour plus d'informations, visitez le site www.b2be.com.