What is P2P Cycle and when AP work start?

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Accepted Answer

P2P Cycle is Procure to Pay Cycle. AP work starts after the purchase order is received and goods/services are delivered.

P2P Cycle involves the entire process of procuring goods or services, from identifying the need to paying the supplier.
The cycle includes steps like requisition, purchase order, goods receipt, invoice receipt, and payment.
AP work starts after the goods or services are received and the invoice is received from the supplier.
AP work involves verifying the invoice, matching it with the purchase order and goods receipt, and processing the payment.
Efficient management of P2P Cycle and AP work is crucial for effective cost control and cash flow management.

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