What is source to pay?

Source to Pay (S2P) is a process that starts with sourcing and concludes with payment to suppliers for goods or services rendered. It covers the end-to-end procurement cycle, including activities such as supplier selection, contract negotiation, purchase order creation, goods receipt and acceptance, invoice processing, and payment processing.

S2P process typically involves several steps like supplier onboarding, spend analysis, strategic sourcing, contract management, purchase requisition, purchase order creation, goods receipt, invoice matching, approval workflow, payment processing, and supplier performance evaluation.

There are numerous source-to-pay software solutions available in the market that help organizations streamline and automate their procurement processes. These solutions often integrate with ERP systems, e-procurement systems, and other financial systems to provide complete visibility and control over the entire procurement lifecycle. By adopting a source-to-pay solution, organizations can reduce costs, increase efficiency, improve compliance, and enhance supplier relationships.