Purchase to Pay

Purchasing Insight is delighted to offer "P2P for Finance People" free to subscribers of Purchasing Insight Extras. Perhaps the biggest frustration that any organization experiences when optimizing purchase to pay processes is getting a truly holistic view across procurement and finance. And it's hardly surprising. Accountants no more understand what purchasing people do than purchasing people understand finance. It's not a criticism. Why should they? But for Purchase to Pay to be really effective the gap between the two functions needs to be spanned.

One of the leading financial and business advisers, Grant Thornton Sweden, has deployed an invoice processing solution from enterprise purchase-to-pay specialist Palette as the backbone of its internal and hosted electronic invoice management (EIM) service. Grant Thornton Sweden is one of the leading financial and business advisers, providing services in Sweden and internationally. Currently processing around 30,000 invoices per month for over 300 customers both in Sweden and internationally, Grant Thornton’s EIM service improves the efficiency of customers’ accounts payable, as well as optimising the company’s own internal invoice management system.

Purchase to Pay is crucial to making promised savings a reality. A great promised saving for a particular procurement category is worthless if you can't prevent people in your organization going off piste when it comes to purchasing. And a great supplier relationship will be ruined if your finance function pays late. ImageBecause you're reading this - you probably already know all about P2P. But do you really know what P2P is? Because depending on whether you see it from a finance point of view or a purchasing point of view you could have a very distorted view of what getting P2P right is all about. It's a bit like a police investigation. Three different witnesses to a crime can give three entirely different accounts of an incident - so much so that the police could be forgiven for thinking that there was three separate incidents. The witnesses are not stupid and they're not lying - they simply have different points of view. And its the same with P2P.