Procure-to-Pay (P2P) Process

The Procure-to-Pay (or also: Purchase to Pay - P2P) process is an essential part of e-procurement that includes all steps from purchasing to payment. This process helps companies manage their entire purchasing cycle, from placing an order to paying the invoice.

Steps in the P2P process

1. Request This is the first step in which an employee submits an internal request for goods or services. The requisition must be approved by authorized persons before it is converted into a purchase order. The supporting document in this step is the Application Document, an internal application for goods or services.
2. Purchase order After the request is approved, a Purchase Order (order) is created and sent to the supplier. This is the official document that initiates the purchase.
3. Order confirmation The supplier confirms the order with an Order Confirmation, which constitutes the formal agreement for the delivery of goods or services.
4. Receipt of Goods/Services When the goods or services are delivered, they are checked for quality and quantity. The Receipt documents the receipt of goods or services and any discrepancies or problems are recorded for further action.
5. Billing The supplier sends an Invoice which is checked against the purchase order and receipt details. This process, also called invoice matching, ensures that there are no discrepancies before the invoice is approved for payment. If necessary, a credit note can also be sent and received.
6. Payment Once the invoice has been approved, payment will be made according to the agreed payment terms. This step concludes the P2P process and is recorded in the company's financial administration, by matching the outstanding invoice against the payment in the bank.

P2P via Peppol

The standardization and electronic exchange of documents through networks such as Peppol improve the accuracy, speed and traceability of transactions. In the P2P process, the order, invoice and credit invoice can be sent via Peppol and Invoice Response Messages provide status updates of exchanged documents.

Status updates (Invoice Response Messages) via Peppol

Peppol offers the option to send and receive status updates, also known as Invoice Response Messages. These messages cover the entire process from order to payment. Status updates provide real-time information about the progress of an order, such as order confirmation, shipping, receipt and invoicing. This ensures transparency and makes it possible to intervene quickly in case of any problems, leading to a more efficient and reliable purchasing process.