Procure to Pay
Definition
The Procure-to-Pay (PTP) process contains all steps from purchasing goods from a supplier, to paying the supplier.
PTP is also known as Purchase-to-Payment.
Steps
Some basic steps include:
- Create or Maintain Suppliers
- Prepare Purchase Order
- Receive Goods from Supplier
- Enable Payment
Process Flow
The procurement cycle passes through the following phases:
- Determination of Requirements
- Source Determination <Or> Vendor Selection and Comparison of Quotations
- Purchase Order Preparation
- Purchase order Release
- Purchase Order Follow-Up
- Goods Receiving and Inventory Management
- Goods Inspection
- Invoice Verification ( Subject to acceptance of Goods Inspection)
- Issue Payment Advice
- Vendor Performance
Related Business KPIs
- Inventory Days of Supply - Raw Material
- Number of Products Ordered
- Purchase Order Fulfillment Ratio
- Purchase Order Lead Time
- Purchasing Spend
- Ratio of Automatically Created of Purchase Orders
- Supplier-On Time Delivery Performance
Related links
- Business Process Monitoring for Procure to Pay
- [Accounts Payable - Procure to Pay]
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3 Comments
Unknown User (106l672v0)
Hi,
I thought it would be benefitial if we added related business KPIs to the scenario descriptions. Business KPIs enable you to measure whether you run your respective process in a good or bad way. Since we already have a very rich and comprehensive repository of business KPIs inside BPX, I just added some links.
Please let me know what you think. I might add additional KPIs to other scenarios as well...
Regards,
Nadim
Unknown User (1000d8ypj)
Do you know where I can go to find out more info on how PTP works? Im lookning for things on rebate management and payment processing? THANKS!
Changlin Ke
All the pages of Related links are broken.