What is the P2P (Procure-to-Pay) cycle?

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The P2P cycle is the process of procuring goods or services from suppliers, receiving and approving invoices, and making payments.

The cycle starts with identifying the need for a product or service and creating a purchase requisition.
Next, the procurement team selects a supplier, creates a purchase order, and sends it to the supplier.
Upon receiving the goods or services, the receiving department inspects and confirms receipt, which triggers the invoice generation.
The invoice is then matched with the purchase order and receiving report for accuracy and approval.
Finally, the approved invoice is processed for payment, completing the P2P cycle.
Example: A company needs to purchase office supplies, so they create a purchase requisition, issue a purchase order to a supplier, receive the supplies, approve the invoice, and make the payment.

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