The Purchase-to-Pay stage is all about optimizing the process from the point someone needs to place an order with a vendor to the point that vendor gets paid. This includes both vendors with which you have existing contracts and those where no contracts are needed - like purchases using a corporate credit card. The end goals of a well-oiled purchase-to-pay process is to make it fast and efficient for buyers, while also ensuring proper internal controls and compliance.
ORDERING/RECEIVING GOODS AND SERVICES
The first step in the purchase-to-pay stage is when your employees need to purchase goods or services from a vendor. Compliance with policies is critical for all purchases, while compliance with buying off of contract is important when you have pre-negotiated pricing with vendors.
Key activities here include establishing processes for contractual compliance, completing and approving purchase requisitions, and ensuring the goods and services received meet quality standards. It also includes managing purchase made by corporate or personal credit cards, and ensuring they comply with policy.
Vendor Centric can help you streamline your entire ordering and receiving process. We’ll identify opportunities to eliminate paper, improve internal controls and speed up the ordering process for your staff. We can also help you identify the best design of your corporate credit card program.
RECONCILING AND APPROVING INVOICES
The next important activity in the process is the receipt, reconciliation and approval of vendor invoices. Key activities here include ensuring charges are accurate, comparing pricing to contracts, coding expenses to the right accounts and moving the invoice through the approval process. It also requires getting the invoice data into the accounting system for payment.
Invoice approval is oftentimes a paper-based, inefficient process. We can help you streamline the process by eliminating non-value added tasks, and moving to an automated process that will enable you to eliminate the vast majority of paper and provide much greater visibility into the process. There are a variety of software and shared service options on the market - we’ll help define your requirements and find the right one for your needs.
7 Questions to Determine if Virtual Credit Cards are
Right for You
More than half of B2B vendors now accept payment electronically- and the number keeps going up. Learn how you can use virtual credit cards to capitalize on this growing trend.
Download this free tool to review why organizations and their vendors are using virtual credit cards and determine if they are right for your organization.
PAYING THE VENDOR
Once invoices have been approved, the last step is to get your vendors paid. Making the process efficient while ensuring there are solid internal controls in place, are both important. Reducing payment errors, mitigating the risk of fraud, ensuring compliance and supporting effective cash flow management are also key outcomes of this process.
There are a variety of emerging technologies that can significantly streamline the vendor payment process, while also improving internal controls and mitigating the risk of payment errors and fraud. Vendor Centric can help you explore options to streamline your payment processing, and implement a solution that is right-sized for you.