What is Purchase to Pay? Here’s What You Need to Know!

2nd June 2022

Here’s everything you need to know when asking, ‘what is purchase to pay?’

So, you’re asking yourself the question, what is purchase to pay? Well, here at Hudson Procure, we are ready to give you all the answers!

In this blog, we will cover what the purchase to pay process is and the stages it covers. Then, we will give you information on who is out there to help you! We will even tell you some issues and challenges that can arise. You don’t want to miss it, so keep reading to learn more…

What is purchase to pay?

Often abbreviated to P2P, purchase to pay is the process of purchasing, receiving, and paying for goods and services. It is also known as the procure to pay process, eProcurement, or req-to-cheque. It is the entire process from beginning to end, with the help of technology to process information. This covers the following steps:

1.     Identifying needs

The first stage of the purchase to pay process is identifying the business’ or organisation’s needs. This is where it is decided which particular services or products are required.

2.     Requisition management

This is where a formal request is made for the required goods or services and gets approved.

3.     Purchase order issued

After the purchasing requisition is approved, a purchase order is sent to the supplier.

4.     Receipt for goods/services

A receipt is then created once the supplier(s) deliver their goods or services.

5.     Invoice received

The invoice for the supplier’s services/goods is entered into a system for processing.

6.     Invoice processing

During this stage, the invoice is compared to the purchase order number and related documentation. If there are any errors, an investigation will be launched. Invoices that don’t have a purchase order number will be reviewed for approval.

7.     Accounts payable

Invoices that have been approved will be passed on to accounts payable. This leads to the payment being made and the system being updated.

Challenges faced in the purchase to pay process

As the purchase to pay process has many stages, plenty of issues can arise. This can make the process complex and often stressful. Here are a few issues you may face:

Lack of visibility

Different organisations that use disparate systems can often lack access to information within the P2P process. Sometimes, information that is available can be inaccurate. Therefore, it leads to a lack of visibility across suppliers and spend. This impacts the ability for an organisation to make strategic business decisions!

Disparate systems

Different departments will have different processes. This means that consolidating data can become a challenge. Procurement and accounts payable functions are managed separately. They will have different policies, priorities, and systems. Due to this, there is the potential for problems. Lack of uniformity can lead to errors and inefficiencies.

Policy non-compliance

It is the responsibility of procurement departments to negotiate pricing with suppliers. Accounts payable will comply with these negotiated agreements. Without the help of technology to cover both processes, policy non-compliance can lead to significant and unnecessary costs.

Who can help with the purchase to pay process?

Those new to the procurement process may want someone to guide them. It can always be beneficial to have support with the purchase to pay process as experts are familiar with it. Afterall, it is their job!

Having a helping hand along the way means you instantly have someone there when you have questions. They can handle stages for you and offer a variety of support. So, if you think you need support and advice, contact Sourcing Specialists, such as ours at Hudson Procure.


Here’s a summary of our blog on the purchase to pay process!

The purchase to pay process involves the following stages:

  1. Identifying needs
  2. Requisition management
  3. Purchase order issued
  4. Receipt for goods/services
  5. Invoice received
  6. Invoice processing
  7. Accounts payable.

You may face some of these challenges:

  • Lack of visibility – Sometimes, there can be inaccuracies that can lead to nonstrategic decisions.
  • Disparate systems – Different departments have different processes. This can lead to inaccuracies and inefficiency.
  • Policy non-compliance – This can lead to losses without the help of technology.

If you require support, help is available!

Turn to the experts for help. Professional sourcing consulting firms can support you through the whole process.

Still got questions about the purchase to pay process? Contact us and let our experts give you the advice you need!

How can Hudson Procure help with the procurement process?

At Hudson Procure, our procurement experts have nearly two decades of experience. No matter what kind of support you’re looking for, we can help.

Procure Consult

With Procure Consult, we’re offering support with tender management and ad-hoc procurement consultancy. Our expert team will manage the end-to-end procurement process or offer assistance at any stage, as and when required.

Procure Health Check

With Procure Health Check, we’ll conduct a full review of the strategic and operational procurement processes within your organisation. We’ll identify the areas that need improvement and help you drive greater value from the procurement process.

Procure Analyse

The purpose of Procure Analyse is to conduct a high-level analysis of your spending activity. We’ll help you understand your current strategic purchasing behaviour and highlight areas that can deliver greater value. Offered as part of Procure Health Check or as a standalone service.

Procure Outsourcing 

With Procure Outsourcing, we deliver a range of procurement solutions on an outsourced basis, completely bespoke to you. This can range from delivering multiple tender projects as a package to delivering the full procurement management function of your organisation.

Procure Post

With Procure Post, you can share your tender on one or more of our 11 sector-specific portals. This way, you’ll increase your chances of finding the perfect supplier.
Get in touch for a consultation and find out how we can help your business grow.

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