What is Procure to Pay Software?

The term Procure to Pay Software is not very familiar to many people because it is a term invented by the software industry to describe the various processes and activities involved in buying raw materials, goods and services.

This Procure to Pay Software flow includes raising requisitions, approving steps, Placing orders, receiving invoice and goods, receiving supplier performance and compliance.

If you look at the process in detail there are many complex activities happening behind the scene. A procure to pay software simplifies these activities and helps companies to reduce cost, save time, etc.,

Procure to Pay Process

A typical procure-to-pay process includes many steps:

1.       Requisition - Need for materials or services is identified and a requisition is created.

2.       Vendor selection – Proposals are invited from different vendors. However, this step can be skipped if a preferred supplier has already been identified.

3.       Purchase order – Once a vendor has been chosen, a purchase order is sent with the quantity of goods required and the price. Only certain personnel can be authorised to approve the purchase order, depending on the value of the order.

4.       Goods received - Once the materials are received, they are marked as received in the system and matched against the corresponding purchase order.

5.       Invoice received – Once the supplier sends the invoice, it is entered in to procure to pay system and matched against the corresponding purchase order and the goods received.

6.       Approval – The invoice is matched against the purchase order and is reviewed to make sure that it complies with the company policy and that the amount is within the limit authorised by the company.

7.       Payment - The invoice can now be processed for payment.

The whole procure to pay process from end-to-end includes many stakeholders, both internal and external. Organisations have no way of knowing if they are spending the right amount of money and with the right suppliers. Having a software to manage this process can make things easier for organisations.

4D Procure-to-Pay software by Hourglass IT Solutions helps corporates of any size to manage their requisition, purchase order, inventory, receiving & quality control process as well as supplier invoicing, supplier payments and petty cash processes efficiently. It helps companies streamline the procure-to-pay process, save a lot of time, ensure audit requirement is captured and reduce processing errors. The software is also cost effective and easy to use.

4D Procure-to-Pay software is a cloud based software which means that it can be accessed from anywhere at any time.

The procure-to-pay software also comes with an APP for ease of use in creating and processing purchasing, supplier invoice and payment transactions.