The Procurement Glossary » Procure-to-Pay (P2P)
Procure-to-Pay (P2P)
Procure-to-Pay
Also known as: P2P
Definition
The end-to-end operational cycle of buying goods and services — from requisition and approval through purchase order, receipt, invoice matching and payment.
Explanation
P2P is the execution half of procurement: it assumes suppliers and prices are already set and focuses on running everyday buying accurately, on budget and on policy. Automating each hand-off removes delay, error and off-contract spend.
Example
A requisition for laptops is approved, turned into a PO, received, matched to the invoice and paid — all within the P2P system.
Related terms
- Purchase Requisition (PR) — An internal request to buy something, raised by a staff member and routed for approval before any order is placed.
- Purchase Order (PO) — A buyer's official document authorising a purchase from a supplier, stating items, quantities, prices and terms; once accepted it forms a contract.
- Three-Way Matching — An invoice-control check comparing the purchase order, the goods-receipt record and the supplier invoice before payment.
- Source-to-Pay (S2P) — The widest procurement cycle — strategic sourcing and supplier selection on top of the operational procure-to-pay process.
Related concepts
- Procure-to-Pay (P2P) — The end-to-end operational buying cycle — from requisition and approval to purchase order, receipt, invoice matching and payment.
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Frequently Asked Questions
What is Procure-to-Pay (P2P)?
The end-to-end operational cycle of buying goods and services — from requisition and approval through purchase order, receipt, invoice matching and payment. P2P is the execution half of procurement: it assumes suppliers and prices are already set and focuses on running everyday buying accurately, on budget and on policy. Automating each hand-off removes delay, error and off-contract spend.
Can you give an example of Procure-to-Pay (P2P)?
A requisition for laptops is approved, turned into a PO, received, matched to the invoice and paid — all within the P2P system.
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