P2P Business Cycle — Bellwether
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Procurement Overview
  • Procurement is the process of purchasing goods, materials, or services
  • It is typically done through a purchasing organization, department or individual via an agreement with a vendor or supplier
  • Terms are negotiated including price, payment terms, delivery time, and what penalties are built in should any of these be violated
Procure to Pay (P2P) Business Process Cycle
  1. Purchase Requisition – employee has a need, completes purchase requisition, and submits to purchasing department.
  2. Request for Quotation – Purchasing department invites quotation from sourcing vendors listing terms, conditions, pricing, and delivery date
  3. Quotation – Sourcing vendor(s) submit quotation with their willingness and ability to meet said demand.
  4. Outline Agreement – Binding agreement that buying party is going to purchase specified
  5. Purchase Order – This is a legal contract between the buyer and the supplier.
  6. Goods Received – Supplier ships materials, goods or renders services.
  7. Invoice Verification – Invoice is measured against goods or services and matched to purchase order.
  8. Payment – Finally, the supplier is paid for the settlement of the contracted arrangement.

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