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P2P meaning: What is meant by P2P?

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by Beroe Inc,
13 December 2022

What is p2p (Purchase-to-pay) mean?

Purchase to pay, or p2p, is the entire cycle of purchasing, starting right from the purchase request to finally paying the supplier for the goods. It's the end-to-end process of making a purchase. 

A well-optimized purchase-to-pay process can help businesses become time-efficient, get better value for their monetary investments, and enhance overall business performance. 

How does the Purchase-to-pay cycle work? 

Here's the step-by-step procedure of P2P cycle:

  • The P2P cycle starts with identifying the needs or requirements and finding a suitable supplier for that

  • The purchasing policy looks over the purchase request and acts accordingly.

  • The company crafts its order and sends it to the vendor or supplier for submission.

  • The vendor completes the order.

  • The supplier sends over an invoice. 

  • Finally, the payment gets delivered to the supplier, and the process ends here. 

Purchase-to-pay can benefit businesses in a number of ways: 

  • The P2P cycle can result in overall cost reduction for the company. 

  • It can also help in minimizing time investments.

  • Increased efficiency and execution 

  • An optimized purchase-to-pay cycle can help businesses ensure happy and satisfied employees.

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