AP & P2P Process

Accounts Payables (AP) process deals with the activities from the time an expense is
incurred to the final payment to the party. AP includes payments to vendor, salary
payment, operating expense payment, etc.

Procure-to-Pay (P2P) is a process which involves various activities from obtaining

material from vendor for production and finally making the payment to settle the
account

These processes are continuously monitored for its efficiency so as to continuously

manage the cash flow of the company

AP process for payment to vendor is also an integral part of P2P process and
impacts the working capital requirement and operating cycle
 P2P FLOW CHART Accounts Payables Process
for Vendor Payments

PURCHASE PURCHASE INVOICE

REQUISITION
Production
02 ORDER

Purchase
04 RECEIPT

Invoice is
06
department APPROVAL & department GOODS received from the PAYMENT TO
sends the CONTRACT prepares and RECEIPT vendor and is VENDOR
material sends the PO to checked and
requisition based Purchase vendor which Goods received Payment is
processed based
on the departments contains material will be checked approved and
on the terms of
requirement to authorizes and requirement, and inspected to made as per the
payments agreed
the purchase approves the quantity and ensure the invoice to the
in the contract
department purchase agreed price quality and vendor
requisition and quantity as per
selects vendor as the PO

01 per the contract

03 05