Procure to Pay refers to the process of purchasing and acquiring goods and/or services online. It involves integrating accounts payable and purchasing software to easily manage every step of the procurement process.
The most important element of a procure-to-pay strategy is good technology and software. Good software provides automation to streamline your process.
For example, Sysynkt can support your organisation through its true cloud experience and innovative procure to pay functionalities. Join BDI for a series of webinars demonstrating key Sysynkt features, including how Google AI is leveraged to automate invoice processing. Free tickets are available now via Eventbrite.
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Sign UpKey terms
The Procure to Pay process involves a variety of key technical terms. An understanding of P2P solutions therefore heavily relies on understanding these key terms.
Requisitioning
This is the official order to request the use of something. For example, a team member raising an internal request for the purchase or supply of a specific good qualifies as requisitioning.
Approval
Senior team members must sign off requisition requests a junior staff member raises, known as approval. Approval indicates that the purchase is necessary and that the purchasing process should proceed.
Purchasing
Purchasing is the result of requisitioning. In traditional procurement processes, this step is usually completed by the purchasing department at the request of an end-user. However, it is important to note that this does not mean that the payment has occurred.
Receiving
This is when the good or service is delivered to the organisation. Typically, this occurs before payment within the procure-to-pay process.
Payment
In the business context, payment typically takes place once the goods or services have actually been delivered or received.
Accounting
Because this is a company payment with tax implications, accountants need to accurately keep records. They also must reconcile the transfer of funds with the original purchase order and approval.
Four steps of Procure to Pay
Four simple steps form the Procure to Pay process. These are represented in the diagram below.
Good P2P software can automate elements of this process, reducing the amount of time spent by teams on administerial tasks. This provides numerous benefits to a business, such as active control over budgets, consolidating manual commerce processes to reduce errors, and streamline catalogue maintenance.
Benefits of Procure to Pay
Using a Procure to Pay solution offers a wide range of business benefits.
Summary
The Procure to Pay process is streamlined by using specific P2P software. Integrating accounts payable and purchasing software helps organisations easily manage each step of the procurement process. Choosing a good P2P software automates elements to free up time for team members to work on important tasks. A Procure to Pay process is only as strong as the solution behind it.
How BDI can help your organisation with Procure to Pay
Sysynkt’s Procure to Pay (P2P) module streamlines your expenses and invoices process, creating a pain-free and simpler solution for your organisation. The software brings SunSystems up to date by introducing modern technology to the software. For example, AI and document processing technology within Sysynkt automatically capture supplier invoices from your inbox and matches them against orders.
No matter what size, Sysynkt can meet your organisation’s needs through configuration. Whether you are a small charity with five users or a large multi-national with complex authorisation processes, Sysynkt can be configured for your needs. By removing the traditional user-based pricing, Sysynkt can be used by anyone within the organisation without worrying about massive increases in user costs.
If you believe Sysynkt is a good fit for your organisation, then please contact one of our sales team today for a consultation. We would welcome the opportunity to introduce this innovative new software solution to your organisation.
Alternatively, why not join us for a live demonstration of Sysynkt’s key features, including its purchase management functionality? Tickets are available below.
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