Overcoming common Source-to-Pay challenges for better efficiency

💬 Ever noticed how one small delay in billing can affect the entire P2P cycle? In my years of working in finance operations, I’ve seen how even a single missed invoice or mismatched PO can create a ripple — delayed payments, vendor escalations, and last-minute month-end chaos! That’s why I believe the Billing process isn’t just about data entry or invoice tracking — it’s about connecting finance, procurement, and operations seamlessly. Here’s how I like to look at the P2P billing flow 👇 🧩 Purchase Requisition (PR) – where the need begins. 📄 Purchase Order (PO) – setting clear expectations with vendors. 📦 Goods/Service Receipt – confirming what was delivered. 💰 Invoice/Billing Validation – matching PR, PO & GR (the 3-way match!). 🏦 Payment Processing – ensuring accuracy and timeliness. 📊 Reconciliation & Reporting – closing the loop with transparency. When every step talks to the next, the process becomes smoother, faster, and more reliable — and that’s where the true value of Billing in P2P lies. Efficiency in billing isn’t just about numbers; it’s about building trust, accuracy, and financial discipline across teams. Would love to hear — how does your organization ensure smooth billing in the P2P cycle? #P2P #BillingProcess #FinanceOperations #AccountsPayable #VendorManagement #ProcessImprovement #ProcureToPay #FinanceCommunity #LeadershipInFinance #KnowledgeSharing

Diverse Supplier Pipeline & Prioritization for AP Onboarding Modern enterprises face mounting pressure to build inclusive supply chains while maintaining operational efficiency. Procurement teams must balance diversity goals with rigorous vendor onboarding requirements, often juggling compliance checks, spend analysis, and certification validation across multiple suppliers simultaneously. The accounts payable (AP) onboarding process becomes a critical bottleneck where good intentions meet operational reality. Read the original article: https://lnkd.in/eae_Ph-2

Interview Questions & Answers on P2P 1. What is the Procure-to-Pay (P2P) process? Answer: It is the end-to-end process from identifying procurement needs, creating purchase orders, receiving goods/services, invoice matching, and finally making payments to suppliers. 2. What are the key documents used in the P2P cycle? Answer: The main documents are Purchase Requisition (PR), Purchase Order (PO), Goods Receipt Note (GRN), and Supplier Invoice. 3. Can you explain the three-way match? Answer: It is the process of comparing the PO, invoice, and goods receipt to ensure quantity, price, and items are consistent before payment approval. 4. How do you handle invoice mismatches? Answer: Investigate differences by contacting procurement or suppliers. If it’s an error, request corrected invoice or credit note. Payment is held until resolved. 5. What are common risks in the P2P process? Answer: Risks include duplicate payments, unauthorized purchases, maverick spend, late payments, and invoice fraud. 6. What controls help mitigate these risks? Answer: Controls include approval hierarchies, vendor master file review, automated three-way match, segregation of duties, and periodic audits. 7. How would you audit the P2P process? Answer: Review purchase requisitions, validate approvals, test three-way matches, check for duplicates, and verify timely payments. 8. How can automation improve the P2P process? Answer: Automation speeds up invoice processing, reduces manual errors, and enforces controls such as automated matching and approval workflows. 9. What happens if goods received do not match the purchase order? Answer: The discrepancy is reported to procurement and supplier; corrective actions like returns or credit notes are initiated before payment. 10. Describe maverick spending and its impact. Answer: Maverick spend occurs when employees purchase outside approved vendors or processes, increasing costs and compliance risks. Controls and training reduce this risk. #P2P #PTP #Payments #Procure #Procuretopayment #Purchase #Puerchases #Payments #ACH #Debit #Accounts #Finance #GL #Closing #Monthend #Interview #Jobsearch #Helping

Streamlining your business? The Procure-to-Pay (P2P) cycle is where efficiency begins! The Procure-to-Pay process is the backbone of financial operations, connecting sourcing decisions to final payment. Mastering these 8 steps is crucial for cost control, vendor relations, and audit readiness. Here is the essential P2P journey: 1. Requirement & Quotations: It all starts with a clear business need and gathering competitive quotes. 2. Internal Approvals: Critical sign-offs from key stakeholders like Procurement, Project Heads, and Department Heads ensure compliance and budget adherence. 3. Vendor Code & PR Creation: Formalizing the intent through Vendor Code creation and Purchase Requisition (PR). 4.PO Creation: Issuing the official Purchase Order (PO) to the vendor. 5.Receipt of Goods/Services: The physical or virtual delivery, tracked via GRN (Goods Receipt Note) / SRN (Service Receipt Note). 6. Invoice Booking: Receiving and accurately recording the vendor's invoice against the PO. 7.Payment Request & Audit Approval: The financial review and necessary audit checks before fund release. 8. Final Payment: The completion of the cycle and successful settlement with the vendor.

If you're still cutting checks every week, chasing down signatures, or juggling vendor emails, it might be time to rethink your AP process. Accounts Payable is one of those areas that can quietly drag down productivity, cash flow, and weaken vendor relationships. Here are a few simple changes that go a long way: - Automate your bill workflow: Tools like BILL take you from manual payments to fully automated approval workflows. No more passing paper around, waiting on one person to sign, or digging for missing invoices. - Standardize vendor onboarding: Make sure every new vendor provides a W-9, payment info, and contact details upfront. Not only does this reduce delays, it sets a tone of professionalism and expectation from day one. - Set scheduled payment runs: Run AP twice a month or on a fixed cadence so vendors know when to expect payment, and so you’re not making ad hoc transfers every other day. - Reduce email clutter with centralized communication: Let vendors upload docs directly to your AP system. One place for everything > 100 loose threads in your inbox. - Always verify before you pay: Double-check invoice accuracy, especially on recurring charges or project work. Overpayment and duplicate payments happen more often than you think. Making AP smoother doesn't just save time, it builds trust with vendors, strengthens internal controls, and lets your team put their time toward more strategic work.

💡 Outdated processes cost time, money, and morale — but they don’t have to. This article on 14 Strategies for Accounts Payable Process Improvement highlights exactly how modern automation can transform AP from a manual, reactive function into a proactive driver of efficiency. From eliminating paper approvals to implementing vendor portals and fraud detection, these strategies are practical, scalable, and achievable, no matter the size of your organization. https://lnkd.in/ezu6UY8w

The Procure-to-Pay (P2P) cycle is a comprehensive process that spans from identifying a business need to completing vendor payment. 1. Requirement Identification – Departments determine the need for goods or services. 2. Purchase Requisition – A formal request is initiated and routed for approval. 3. Vendor Selection – Suitable suppliers are evaluated and chosen. 4. Purchase Order (PO) Creation – A PO is generated and sent to the vendor. 5. Order Acknowledgment – Vendor confirms acceptance of the PO. 6. Goods Receipt – Items are received and inspected for quality and accuracy. 7. Invoice Receipt – Vendor submits an invoice for the delivered goods/services. 8. Invoice Verification – The invoice is matched against the PO and goods receipt. 9. Payment Processing – Verified invoices are processed for payment. 10. Accounting Entries – Financial records are updated accordingly. 11. Reporting & Auditing – Data is analyzed for compliance and performance. 12. Supplier Evaluation – Vendors are reviewed for future engagements. Benefits of P2P cycle. Cost Efficiency – Minimizes duplicate orders and payment errors. Stronger Supplier Relationships – Ensures timely and accurate payments. Improved Compliance – Facilitates audit readiness and regulatory adherence. Operational Agility – Enhances workflow through automation and system integration.

🚀 Glide Path to Continuous Improvement in Procurement & P2P Operations A glide path is a structured roadmap designed to move a process from its current performance level to a target state with measurable milestones. In Procurement and Accounts Payable, it helps ensure efficiency, compliance, and cost optimization over time. Here’s a simple 6-step glide path to drive improvement: ✅ 1. Baseline Assessment Analyze the current process performance — invoice aging, PR-to-PO cycle time, payment delays, and supplier issues. ✅ 2. Identify Gaps & Pain Areas Highlight inefficiencies like manual approvals, duplicate vendors, or poor GR/IR reconciliation. ✅ 3. Define Target Metrics Set realistic KPIs — e.g., reduce invoice cycle time by 20%, achieve 98% on-time payments, or automate 70% of invoices. ✅ 4. Develop Action Plan Outline short-term (automation, training) and long-term (process redesign, system upgrade) initiatives. ✅ 5. Monitor & Review Progress Track monthly dashboards, supplier feedback, and exception trends to ensure continuous improvement. ✅ 6. Sustain & Standardize Once improvements are achieved, document SOPs, automate controls, and align governance to maintain consistency. A well-defined glide path transforms procurement from a transactional function into a strategic value driver for the organization. #Procurement #PTP #AccountsPayable #ProcessImprovement #ContinuousImprovement #GlidePath #SupplierManagement #SpendAnalytics #FinanceTransformation #OperationalExcellence

Foundational Best Practices for payables department (The Non-Negotiables) These are the baseline requirements for any well-functioning payables department. 1. Standardize and Document Procedures: · Create a detailed AP policy and procedure manual. This ensures consistency, reduces training time, and is essential for audits. · Define clear approval hierarchies and authority limits (e.g., Manager can approve up to $10,000, Director up to $50,000, etc.). 2. Implement a Three-Way Match: · This is the cornerstone of internal control. Before payment, ensure three documents match: · Purchase Order (PO) - What we ordered. · Receiving Report - What we received. · Supplier Invoice - What we are being billed. · Any discrepancies must be resolved before payment. 3. Enforce a Robust Invoice Approval Workflow: · Invoices should not be paid based on an email alone. Use a formal, tracked workflow (whether digital or physical) that requires sign-off from the budget owner or department head. 4. Strengthen Security and Fraud Prevention: · Segregation of Duties: The person who approves invoices should not be the person who prints/sends checks or initiates electronic payments. · Mandatory Vacation: Require employees to take consecutive days off, making it harder to conceal fraudulent schemes. · Vendor Master File Maintenance: Regularly review and clean the vendor list to eliminate duplicates and inactive vendors. Implement a process for validating new vendors.

Hello everyone, Procurement to Payment (P2P) Process. P2P business process cycle is how an organization purchases goods or services till it settles the payment. The flow is defined below: 1) Identifying & defining the need: A business need materials, services, IT equipment, office supplies etc. and it arises from the user department. They specify the details of procurement. 2) Purchase requisition (PR): the document raised requesting for material is called purchase requisition. sometimes auto PR can also be raised if it re-ordering and other levels are defined in the system. post approval as per company policy it is sent to procurement department. 3) Vendor selection and request for quotation process: if there is no valid price list for the time and principal based procurement then quotations are invited from selected vendors. at times tendering or open advertisement is given for quotations by vendors. once quotes are received (sealed envelopes to be opened by a committee) evaluation is undertaken on the basis of price, quality, lead time, payment terms, techno commercial and capability. 4) Issue of purchase order (PO): A PO legally binds the company and the vendor towards material or service purchase. released based on selected vendor, commercial terms agreed including payment terms and legal clauses. A master contract should also be signed. 5) Receiving goods or services (GRN / Service receipt note): as per agreed terms the vendor dispatches good or provides service. the warehouse or user department confirms what was actually received or service provided including ensuring the quality of product or service. 6) Vendor invoice submission and booking: post GRN the vendor invoice details are shared with FA team or the commercial department of the organization for booking the invoice. it is important to note that three way matching concept i.e. PO, GRN and Invoice are done. it is also to be notee that value should not exceed the PO amount or GRN amount (if partial receipt). 8) Payment to vendor: Once booking and its approval is done the invoice is paid as per due date. It is important to note that vendor master is properly prepsred and approved including bank accounts. important to note that in the entire process segregation of duties & access control are properly defined. 9) Record keeping & reporting: all documents must be stored for audit trails, statutory requirements, dispute resolution, and analytics. It is also important to note that org can focus on digitization and digital flow for record keeping, approval mechanism and document management. All throughout the process flow the role of auditor is very critical and therefore it is important to first understand the business process in details including performing walkthrough. the better we understand the process quality is the audit. happy learning Soneel