P2P Process Understanding

THE PROCURE-TO-PAY PROCESS FLOW CONTAINS THE FOLLOWING STEPS:

       Step 1: Need identified - The need for a product or service is identified.

Step 2: Requisition management - A formal request is made for the goods or services and approved.

Step 3: Purchase Order issued - Once the purchase requisition has been approved by the relevant management, a purchase order is issued to the supplier.

Step 4: Goods receipt - The supplier delivers the requested goods or services and the relevant goods or services receipt is created.

Step 5: Invoice received - The supplier’s invoice is submitted and entered into the processing system.

Step 6: Invoice processing - The invoice is either matched against the PO and the receiving documents or any exceptions are flagged for investigation. Invoices that do not have an associated PO are routed through workflow for review and approval.

Step 7: Accounts Payable - Approved invoices are passed to accounts payable who make the payment and update the system.