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Glossary

What is purchase to pay?

Purchase to pay, also called procure to pay, is the process that runs from requesting a purchase through ordering, receiving, invoicing and paying the supplier, ideally in one connected system.

Schedule a Demo All Glossary Terms

The main steps

  • Need. someone identifies what is required.
  • Requisition. the request is raised.
  • Approval. the requisition is approved against budget and policy.
  • Purchase order. the order is created and approved.
  • Goods receipt. delivery is recorded.
  • Supplier evaluation. performance is noted.
  • Invoice approval. the invoice is matched and approved.
  • Payment. the supplier is paid on the agreed terms.

How it differs from source to pay

Purchase to pay starts once a supplier and terms already exist. Source to pay adds the strategic steps before it: sourcing, supplier selection and contracting. Teams choose which steps apply to each purchase based on policy and the type of demand.

Why it matters

Purchase to pay is where most transactions happen and where money is lost to duplicate payments, wrong prices and late payment. A connected process gives visibility of commitments, faster approvals and fewer errors.

How Aavenir handles it

Invoiceflow covers the invoice end of purchase to pay: capture, matching to the purchase order and receipt, and a check against the signed contract. It works natively on ServiceNow or standalone, alongside your enterprise resource planning system.

Keep reading

S2P software Source-to-pay (S2P) software runs the whole buying process in one system, from sourcing and supplier selection through...Read more Purchase order management Purchase order management is the process, and often the software, for handling purchase orders from creation and approval...Read more Invoice approval Invoice approval is the step where an invoice is checked and authorized for payment by the right people.Read more

Frequently asked questions (FAQ)

Common questions

Is purchase to pay the same as procure to pay?

Yes, the names are used interchangeably for the process from requisition to payment. Both are often shortened to P2P. The two names come from different traditions but describe the same steps. Read about the procure-to-pay process.

What is the difference between purchase to pay and source to pay?

Purchase to pay begins with a requisition. Source to pay begins earlier with sourcing, supplier selection and contracting, then includes purchase to pay. Source to pay is the wider process. Read about S2P software.

Where do purchase to pay processes break down?

Common problems are orders raised after the invoice, missing receipts, prices that differ from the contract and slow approvals that miss payment terms. Each one costs time or money. See Invoiceflow.

Have a question we have not answered? Ask the Expert

Schedule a demo

See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

Prefer to talk first? Contact the team.