What are the details of the full Procure-to-Pay (P2P) cycle?

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Accepted Answer

The Procure-to-Pay (P2P) cycle involves the entire process of purchasing goods or services, from requisition to payment.

1. Requisition: The process begins with a user creating a purchase requisition for the required goods or services.
2. Purchase Order (PO) Creation: Once the requisition is approved, a purchase order is created and sent to the vendor.
3. Goods Receipt: Upon receiving the goods or services, the receiving department confirms the receipt in the system.
4. Invoice Verification: The vendor sends an invoice, which is matched with the PO and goods receipt to ensure accuracy.
5. Payment Processing: Once the invoice is verified, payment is processed to the vendor.
6. Payment Reconciliation: The payment is reconciled with the vendor's account to ensure all transactions are accounted for.
7. Reporting and Analysis: Data from the P2P cycle is used for reporting and analysis to optimize procurement processes.

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