The Benefits Of Implementing P2P Automation For Your Business

There’s another cool new acronym on the tech city block, and that is P2P! That stands for Procure-to-Pay, and what it means is a great new way for organizations, for example hotels and restaurants,  to procure the services and goods they require to do business and pay for them without a lot of fuss! 

Running a business is a detail-oriented process, you have to make requisitions, then purchase them, receive them, pay for them, and have a clear accounting of it all to show the tax man! Considering all the paperwork, wouldn’t it be great to have a software program that could do it all for you? Yes, it would, and it’s called futurelog, a fantastic tool that can handle the entire process from point of order on to the payment!

But first, let’s take a moment to examine how the P2P system works step by step:

• Identify The Need – Any need for a certain product or service must be identified.

• Manage The Requisition – A requisition for the goods or services must be compiled and approved by the relevant managing body.

• Issue The Purchase Order – Following the approval of the requisition, the purchase order will be issued to the chosen supplier.

• Receipt For The Goods – The requisitioned goods or services are delivered by the supplier who provides a receipt to be invoiced.

• The Invoice Is Entered – The invoice from the supplier is submitted to the processing system to be entered.

• The Invoice Is Processed – The invoice is checked against the purchase order to make sure it’s correct before the processing is completed.

• The Account is Paid – The invoices that are approved are sent onto accounts payable so that payment can be made and the system can be updated.

As can be seen, the process is complicated. The following are the benefits to be had from automating your P2P system!

The Processes Are Streamlined – The elimination of error prone and time consuming manual processes and added efficiency provided by automation will save on costs and increase efficiency in your business’s procure-to-pay operations. 

Supplier Relationships Will Be Improved – The ability to use a streamlined automated electronic process to connect to your suppliers will increase visibility thanks to real-time transactions allowing for better, more accurate tracking that will improve your collaborations and relationships with them.

Promote Better Adherence To Spending Policy – The use of an automated procure-to-pay system will better ensure compliance with contracts that have been negotiated as well as your own spending policies. The simple interface will enable users to find what they are looking for quickly and efficiently while maintaining an accurate record of all purchases made and planned. 

Provides Better Control – The implementation of automated P2P will provide your management with a better view of ongoing operations while lessening the possibility of system disruptions when checks are performed. Being able to see everything thanks to the automated system will greatly mitigate risk while managing your business’s supply chain.

As more and more of our day-to-day business across the globe moves to these kinds of automated software platforms we can expect to see greater profits in the future!