The Procurement Glossary » Straight-Through Processing
Straight-Through Processing
Technology & Systems
Definition
The end-to-end automated completion of a transaction without manual re-entry or intervention.
Explanation
Applied to procure-to-pay, straight-through processing means a requisition becomes an order, receipt and paid invoice through connected, rules-driven steps. It requires clean data and system integration, and it is the goal that automation and touchless processing work toward.
Example
Straight-through processing takes a requisition to a paid invoice automatically whenever everything matches.
Related terms
- Touchless Invoice Processing — The fully automated handling of an invoice from receipt to payment with no manual intervention.
- Procurement Automation — The use of software to perform procurement tasks with little or no manual intervention.
- API Integration — Connecting two software systems through an application programming interface so they can exchange data automatically.
- Three-Way Matching — An invoice-control check comparing the purchase order, the goods-receipt record and the supplier invoice before payment.
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.
Frequently Asked Questions
What is Straight-Through Processing?
The end-to-end automated completion of a transaction without manual re-entry or intervention. Applied to procure-to-pay, straight-through processing means a requisition becomes an order, receipt and paid invoice through connected, rules-driven steps. It requires clean data and system integration, and it is the goal that automation and touchless processing work toward.
Can you give an example of Straight-Through Processing?
Straight-through processing takes a requisition to a paid invoice automatically whenever everything matches.
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