Categories

P2P Automation Workflow Automation

All You Need to Know About Implementing Procure to Pay Automation

Do you agree that the procure to pay (P2P) process is evolving rapidly driven by technological advancements like AI, machine learning, and automation?

And its automation that comes first place and acts as rescuer.

Yes! It’s obvious that with the help of automation, businesses needn’t take up the tedious process of manual work that takes up more resource, cost, and time

Whatever the procure to pay process challenges the businesses may face, automation serves as an ideal solution.

It undoubtedly minimizes human errors, promoting more accurate transactions and fewer disputes.

By this way, Procure to Pay Automation is eliminating the need for manual handling of tasks like purchase requisitions, order processing, and invoice management.

To implement P2P automation, you need an astounding automation solution that aids your business to cater to every minute need of people even during times of emergency within minutes.

Now, being an aspiring business owner, there are certain things you should know like, what is the procure to pay automation, the benefits of P2P automation, and what procure-to-pay workflows can be automated? Also, get to know how to opt for an exemplary P2P automation to streamline your workflows in P2P process?

So, keep reading this blog until the end to gain detailed better insight on P2P Automation.

What is Procure to Pay Automation?

Procure to pay (P2P) automation is making use of software to automate the key functions of procure to pay process which include purchase requisition and approval, invoice management, payments, contract management, and sourcing.

Explore Our P2P Automation Solutions | Free Demo WhatsApp

Benefits of Automating Procurement-to-Pay Process

1. You Can Streamline procurement process workflows

As P2P automation is interconnected throughout the organization, it ensures that all requisitions are requested and approved faster. Similarly, it simplifies the process of suppliers’ selection based on data. Also, the purchase orders that are created and sent to the suppliers are all easily trackable.

2. Drastic Reduction in Invoice Processing Costs

There is usually a lot of time wasted trying to convert paper to electronic documents and the invoices manually. Once an organization has gone paperless, the employees will have time to work on strategic tasks which enhances growth.

3. 100% Tracking Visibility is Not a Myth Anymore

Large amounts of cash are tied up due to low visibility and inefficient invoice processes. By implementing procure-to pay-automation, companies can massively enhance spending control.

4. Maintaining Smooth Relationship with Suppliers

Suppliers utilizing the supplier portal can improve their working capital management as they are aware of when payment will be made to them. Also, they can enjoy perks like early discounts which paves the way for an organization to have a great relationship with suppliers.

5. You Have Enough Data for Informed Decision Making

Data is everything. Organizations will have more control over decision making as they will have more data based on real-time and past reports and analytics. This ensures the organization makes every financial decision based on every piece of data.

What Procure-to-Pay Workflows be Automated?

1. Purchase Requisition and Approval

Automated Requisition Submission:

Employees can submit purchase requests through an automated system that routes them for approval based on predefined rules and thresholds.

Approval Workflows:

Automated routing of requisitions through the appropriate approval chain, including notifications and escalations if approvals are delayed.

2. Purchase Order Creation and Management

PO Generation:

Automatic creation of purchase orders from approved requisitions, with data pulled from ERP or procurement systems to minimize manual entry.

PO Tracking:

Real-time tracking of purchase orders and automated updates on order status.

3. Supplier Management

Supplier Onboarding:

Automated Workflows for collecting and validating supplier information, including compliance checks and document management.

Supplier Communication:

Automated notifications and updates to suppliers regarding order confirmations, changes, or requirements.

4. Invoice Processing

Invoice Receipt:

Automated capture and validation of invoices using Optical Character Recognition (OCR) or electronic invoicing (e-invoicing).

Invoice Matching:

Automated three-way matching (invoice, purchase order, and receipt) to ensure accuracy before processing payments.

Exception Handling:

Automated detection and routing of discrepancies for review and resolution.

5. Payment Processing

Payment Authorization:

Automated workflows for payment approvals and processing, including compliance checks and fraud prevention.

Payment Execution:

Automated scheduling and execution of payments, including electronic funds transfer (EFT) and integration with banking systems.

6. Goods Receipt and Inventory Management

Receipt Verification: Automated logging and validation of received goods against purchase orders and inventory records.

Inventory Updates:

Real-time updates to inventory levels and automatic reordering triggers based on stock thresholds.

7. Reporting and Analytics

Spend Analysis:

Automated generation of reports and dashboards to analyze procurement spend, supplier performance, and process efficiency.

Compliance Reporting:

Automated tracking and reporting of compliance with procurement policies and regulatory requirements.

Having known about the P2P workflows to be automated, it is also essential to know about the vital features to consider while opting for P2P automation

Explore Our P2P Automation Solutions | Free Demo WhatsApp

Ultimate Checklist: Features for Your P2P Automation Tool

• User-friendly interface with easy-to-navigate dashboards and interfaces for both end-users and administrators.
• Automated purchase requisition and approval with pre-defined templates for standard purchase requests.
• Purchase order management with real time tracking and purchase orders from approved requisitions or directly within the system.
• Effective supplier management with tools for managing access for suppliers to view and manage orders, submit invoices, and track payments.
• Invoice processing with three-way matching, OCR, and exception handling. Contract Management with centralized storage for contracts.
• Automated notifications for contract renewals, expirations, and compliance requirements.

Take Away

I hope this blog would have given you a birds-eye view of P2P automation.

Now, are you convinced about implementing automation for your P2P process?

If so, then the next step is looking out for the Best P2P Automation solution provider.

With 7+ years of experience, iSQUARE has developed custom automation solutions across various industries. With us, you can convert every challenge into a profitable opportunity.

So, there is never a better time than now to Schedule a Demo with us to discuss your automation needs.

Explore Our P2P Automation Solutions | Free Demo WhatsApp