October 10, 2021

CurledMark

curled up on the sofa

Accounts Payable and Procurement are strategically linked to streamline the supply chain and find ways to cut costs without compromising quality every step of the way. The more AP and procurement work together, the better supplier relationships and savings to the company can become in the future.

The relation between P2P and AP

P2P or Procure to pay is an end-to-end process from Purchase Requisition to payment to the vendor.
Account payable is a subset(or a part of) the P2P Process.

AP is an accounting and bookkeeping function whereas Procurement is a purchase function.
The purchase-to-pay process, also known as the P2P process, connects the procurement and entire supply chain processes within a company through the goods receipt process, and finally to the payment issued to the vendor.

Procure to Pay = Procure to invoice + Invoice to Pay

P2P:

Material Requisition -> Requisition Approval -> Request for Quotation -> Vendor Selection -> PO -> goods received -> invoice received -> invoice verification -> invoice approval -> invoice payment

The Oracle Prodigy: Overview of the Procure-To-Pay process flow in Oracle  Fusion Applications

Procure to Invoice:

Material Requisition -> Requisition Approval -> Request for Quotation -> Vendor Selection -> PO -> goods received
Invoice to pay: invoice received -> invoice verification -> invoice approval -> invoice payment

Accounts Payable:

PO -> goods received -> invoice received -> invoice verification -> invoice approval -> invoice payment

Also read:

The Power of Patience

The Unfair Advantage

The Power of Now

Time Management Ninja Book

Learn Better

Emotional Intelligence

48 Laws of Power

Financial Freedom

Still Me

Think and Grow Rich

Make Time

So good they can’t ignore you

You are a Badass At Making Money

Man’s Search For Meaning

The Great Gatsby

The Forty Rules of Love Summary

The Norwegian Wood by Murakami Summary

Relentless Summary

The Da Vinci Code by Dan Brown Summary

The Book Of Five Rings Summary