Procure-to-pay
Procure-to-pay is a term used in the software industry to designate a specific subdivision of the procurement process.
Definition
The largest players of the software industry Oracle, SAP, ARIBA agree on a common definition of the procure-to-pay, linking the procurement process and financial department. Are included in this definition the following steps:
- Supplier Management
- Cart or Requisition
- Purchase Order
- Receiving
- Invoice reconciliation
- Accounts Payable
Unlike purchase-to-pay systems, procure-to-pay systems do not include the function of sourcing. Also, notions of production planning & forecasting will be excluded from this definition since it relates to the supply-chain management.
Benefits associated with Procure-to-Pay Systems
Procure-to-Pay systems are designed to provide organizations with control and visibility over the entire life-cycle of a transaction – from the way an item is ordered to the way that the final invoice is processed – providing full insight into cash-flow and financial commitments. Most of the companies using theses systems look for a centralization of their procurement department, or to set-up a shared services organization for the same purpose.[1]
Risks associated with the procure-to-pay Systems
As any system that touches a significant amount of users, implementing a Procure-to-Pay systems require a significant knowledge of the as-is business processes as well as the to-be. Change management is a key component in implementing a procure-to-pay solution.
See also
Supply-chain E-procurement Purchase-to-Pay Spend Management Contract Management Purchasing Procurement outsourcing Shared Services
References
External links
- - Best practices in Procure-to-Pay cycle part1
- - Best practices in Procure-to-Pay cycle part2
- - Best practices in Procure-to-Pay cycle part3
- - Best practices in Procure-to-Pay cycle part4
- - Best practices in Procure-to-Pay cycle part5
- - Best practices in Procure-to-Pay cycle part6
- - Best practices in Procure-to-Pay cycle part7
- - Best practices in Procure-to-Pay cycle part8
- - Best practices in Procure-to-Pay cycle part9
- - Best practices in Procure-to-Pay cycle part10
- Chartered Institute of Purchasing and Supply
- National Purchasing Institute
- Public procurement (European Union).
- Green public procurement (GPP), European Commission.
- [thhp://wwwism.org Institut of Supply Management]