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.

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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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