Procure-to-Pay in ERP: Request to Supplier Payment

Procure-to-pay is the chain from "we need this" to "supplier paid". Done on paper, it leaks money through duplicate orders and unmatched bills. In an ERP each step leaves a record.

The steps

1. Purchase request from a department or from reorder alerts.
2. Approval by value or category.
3. Purchase order to the chosen supplier with price and terms.
4. Goods receipt (GRN) recording what actually arrived.
5. Supplier invoice entered and matched to PO and GRN.
6. Payment scheduled by due date and recorded against the bill.

Controls that matter

Typical problems it fixes

• Duplicate orders to two suppliers.
• Paying invoices for goods never received.
• Stock bought but not recorded.
• Payables known only at month end.

What to measure

• Purchase cycle time from request to order
• Share of orders with a matching GRN and invoice
• Supplier on-time delivery rate
• Price variance compared with the last purchase
• Payables paid by due date

These indicators show where the process leaks time and money. Review them monthly with the purchase head and accounts.

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