---
title: Source to Settle: Definition and How It Works | Aavenir
url: https://aavenir.com/glossary/source-to-settle/
description: Source to settle is the connected cycle of sourcing and buying, from requisition and sourcing events through orders and receipt to paying the supplier invoice.
updated: 2026-11-07
---

[Home](https://aavenir.com/) / [Resources](https://aavenir.com/resources/) / [Glossary](https://aavenir.com/glossary/) / Source to settle Glossary

# What is source to settle?

Source to settle is the connected cycle of sourcing and buying, from requisition and sourcing events through orders and receipt to paying the supplier invoice.

## Stages of the cycle

- [Purchase requisition](https://aavenir.com/glossary/purchase-requisition/)

- Sourcing, including requests for proposal and quotation and auctions

- Contracting with the selected supplier

- Purchase order creation

- Receipt of goods or services

- Invoice matching, approval and payment

The term is close to [source to pay](https://aavenir.com/glossary/s2p-source-to-pay/). Both describe one process from sourcing a need to settling the bill.

## Why it matters

When the stages run in separate systems, cycles get long, errors creep in through rekeying and cash sits trapped in slow accounts payable. Moving every step onto one electronic platform gives buyers one place to work, improves spend visibility and compliance, and lets approvals run as workflows rather than email chains.

## How Aavenir handles it

Aavenir covers the cycle on one platform, natively on ServiceNow or standalone. [RFPflow](https://aavenir.com/solutions/rfp-management-software/) runs the sourcing event and turns the award into a contract, [Contractflow](https://aavenir.com/solutions/enterprise-contract-management-software/) manages the agreement and [Invoiceflow](https://aavenir.com/solutions/accounts-payable-automation/) checks each invoice against the purchase order, receipt and contract before payment.

## Where the cycle breaks

The weak points are the handoffs: a sourcing award that never becomes a contract, a purchase order raised at a different price from the contract, an invoice paid without being checked against either. Closing those gaps is where most of the value of a connected cycle comes from.

## Keep reading

[Source to pay Source to pay is the end to end procurement process, from spend analysis and sourcing through contracting and purchasing to processing invoices and paying suppliers. Read more](https://aavenir.com/glossary/s2p-source-to-pay/)[Procure to pay process The procure to pay process is how an organization buys and pays for the goods and services it needs, from the first requisition to invoice approval and payment. Read more](https://aavenir.com/glossary/procure-to-pay-process/)[Purchase requisition A purchase requisition is an internal request an employee submits to buy goods or services for the organization, which starts approval and the purchasing process. Read more](https://aavenir.com/glossary/purchase-requisition/)

Frequently asked questions (FAQ)

## Common questions

###

### Is source to settle the same as source to pay?

They describe the same idea: one connected process from sourcing to paying the supplier. Some organizations use settle to stress the final financial settlement, including reconciliation. [Read about source to pay](https://aavenir.com/glossary/s2p-source-to-pay/).

###

### How is source to settle different from procure to pay?

Procure to pay starts at the requisition and focuses on buying and paying. Source to settle adds the strategic front end: finding suppliers, running sourcing events and negotiating contracts. [Read about procure to pay](https://aavenir.com/glossary/procure-to-pay-process/).

###

### What are the benefits of a single source to settle platform?

Fewer handoffs, less rekeying, better spend visibility and the ability to check invoices against the contract that was actually negotiated. It also gives procurement and finance the same numbers to work from. [See Invoiceflow](https://aavenir.com/solutions/accounts-payable-automation/).

Have a question we have not answered? [Ask the Expert](https://aavenir.com/contact/)

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](https://aavenir.com/contact/).

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