Purchase-to-Pay: Digitalization in Purchasing
Purchase-to-pay is an important business process that can be made significantly more efficient when fully digitized. With Retarus Integration and Automation, any company can save money and lay the foundation for economic growth.
From Purchase to Payment
Purchase-to-pay (P2P), sometimes also referred to as procure-to-pay, describes a company’s entire procurement process. This workflow consists of a large number of different individual operations. These include:
- Purchase requisition
- The purchase itself
- Receipt of the ordered goods
All of these individual process elements are connected through the transfer of their corresponding data. The large number of organizational units involved makes the entire workflow very complex. There is an enormous expenditure of time and personnel costs with manual processing. Not to mention, with manual processing comes the high risk of error.
The solution is an end-to-end digital and automated purchase-to-pay process that encompasses the company’s entire workflow up through final payment. By eliminating manual processing steps and implementing a new standardized approval process:
- Sources of error are minimized
- Transparency in the process is increased
- Efficiency is maximized and costs are reduced
A digital purchase-to-pay process essentially consists of four pillars:
Electronic exchange of documents
The Benefits of an Automated P2P Process
Installing a modern P2P system with Retarus Integration and Automation offers many advantages. For example, the ability to transfer PDF files or faxes as structured data directly into the ERP system saves time and money. The digital internal flow of information ensures greater transparency, while automation reduces errors.
High Cost Savings
The manual transfer of data is associated with high personnel expenses and thus represents an enormous cost factor for companies. A reliable software solution can reduce the manual effort and associated costs. Purchasing managers can aggregate individual purchases and negotiate appropriate discounts because of better insight into the data. The overview of early-payment discount offers and the integration of attractive e-payment solutions also bring further financial benefits.
In everyday life, few finance managers know where individual supplier invoices are located or whether ordered goods have already arrived. Additionally, processing inquiries takes a long time. With an intelligent digital solution, responsible employees can not only track all processes, but also manage them. At the same time, management gains a better overview of financial trends and achieved KPIs by the individual departments.
With automation instead of manual transmission, human errors are also eliminated. When processing invoices in particular, mistakes can have grave consequences such as payments for incorrect amounts or to the wrong suppliers.
Retarus for Automation of P2P and O2C Process Chains
E-invoicing is often the first step companies take towards a digitalized purchasing process. However, electronic invoice processing is only one part of e-procurement. To leverage the full potential of an automated P2P process, as many workflows as possible must be converted to electronic processing. This is precisely why Retarus offers its Integration and Automation services, which meet all international e-invoicing requirements (B2B and B2G) for both sending and receiving invoices. Retarus’ Long Term Archiving Service guarantees compliance for more than 50 countries with a separate portal and redundant data centers for legally compliant document storage. Thanks to networking with platforms such as Ariba or OpenPeppol, comprehensive digitalization can be achieved without any problems.
E-Invoicing — Digitize Invoicing Processes Intelligently
Use Retarus Integration and Automation to send and receive invoices internationally and in compliance with legal requirements.
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