What is procure to pay (P2P) process?

 What is procure to pay (P2P) process?

Procure to pay process is the term that sums up the process of supply chain.

The terms involved in a P2P process is as below:

*PURCHASE REQUISITION/DEMAND
The place where the SCM is going to begin.
It is an internal official document where it has the requirements of what the organisation needs.

*RFQ:
It is known as REQUEST FOR QUOTATION, where as a buyer we need to float the enquiries with the suppliers to fulfill our requirements.

*QUOTATIONS:
After floating the inquiries with the multiple suppliers,we need to get the quotes from them and its our responsibility to validate the quotes.

*SUPPLIER SELECTION:
So after validating the quotes received ,we need to select a supplier who can match and fullfil all our requirements in the best possible way.

*CREATION OF PURCHASE ORDER:
We have our own ERP systems with subjective to organisations. So we need to create the purchase orders through ERP systems and submit to supplier with mutually agreed terms and conditions.

*FULFILLMENT: (GIIR)
As per the agreed terms and conditions, the materials or services gets fulfilled which is the important part of SCM.

*PAY:
The final part of P2P is pay as per the invoices and as per the mutually agreed conditions with the suppliers