Procure to Pay

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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