The complete procure-to-pay (P2P) process playbook 2025
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At a glance
The procure-to-pay (P2P) process links procurement and finance to manage purchasing from request to payment.
When manual, P2P often suffers from approval delays, invoice mismatches, and limited visibility.
Automation removes these bottlenecks, improving accuracy, speed, and compliance across every stage.
Moxo transforms P2P workflows with end-to-end automation, real-time tracking, and measurable business impact.
Your current procure-to-pay process might be costing you 3-5% of spend
Organizations often underestimate how much time and money gets lost in fragmented procure-to-pay systems.
According to McKinsey, companies can save up to 3-5% of total spend by optimizing P2P processes. Yet many firms still rely on email chains, spreadsheets, and disconnected ERPs that lead to delayed approvals, duplicate invoices, and strained supplier relationships.
This article will walk through the P2P stages, identify key challenges, and explain how automation and platforms like Moxo can transform the way businesses handle procurement and accounts payable.
The 6 core stages of P2P: Critical procurement-to-payment handoffs
The procure-to-pay process usually spans:
- Requisitioning a product or service.
- Getting approval for the purchase.
- Issuing a purchase order.
- Receiving goods or services.
- Processing invoices.
- Making payment.
While the steps seem straightforward, the complexity lies in the handoffs. Procurement, finance, and suppliers all need visibility and coordination. In a manual environment, miscommunication is common – purchase orders get lost in inboxes, goods arrive without matching paperwork, or finance pays without knowing what was received.
A simple analogy is a relay race: each department is a runner passing the baton. If the handoff is fumbled, the whole race slows down. Mapping these handoffs makes inefficiencies visible and sets the stage for automation.
Ending approval bottlenecks: Enforcing budget control in P2P
Approvals are often the biggest bottleneck. Without a structured system, requests can sit idle in someone’s inbox for days. That not only delays projects but can lead to budget overruns when purchases happen without oversight.
For example, a mid-sized consulting firm discovered that almost 20% of spend bypassed approval channels due to ad-hoc purchasing. By introducing role-based approvals, they cut approval delays by 40% and gained better budget visibility.
Automation tools make this easier by routing requests to the right decision-maker based on predefined rules. Instead of waiting for someone to notice an email, the system nudges approvers, tracks timestamps, and ensures accountability.
Invoice security checkpoint: Mastering the 3-way match and exception triage
The 3-way match – comparing the purchase order, goods receipt, and invoice – remains the cornerstone of P2P compliance. It prevents overpayments and ensures the organization pays only for what was actually received.
But exceptions are common. Price mismatches, quantity discrepancies, or missing receipts can derail payments. Left unmanaged, these create friction with suppliers and add extra workload for finance teams.
Think of this stage as airport security: Most passengers (invoices) pass through quickly, but flagged exceptions need inspection. If inspection lines grow too long, the entire flow slows. Automation helps by flagging discrepancies early, routing them to resolution teams, and learning from recurring error patterns.
Invoice processing & payment: Don't miss discounts or pay duplicates
Once invoices arrive, the finance team must validate, record, and schedule payments. Manual processes often cause issues such as:
- Duplicate invoices slipping through.
- Delays leading to late fees.
- Early payment discounts being missed.
According to Ardent Partners, accounts payable departments that digitize invoice capture reduce processing costs by over 60%. One regional logistics company reported that 30% of their supplier calls were about late payments – a number that dropped significantly once they automated their invoicing workflows.
Smooth invoicing is about more than just efficiency; it directly impacts cash flow, supplier trust, and financial forecasting.
How Moxo's role-based portal unifies P2P and ERP
Traditional P2P systems often rely on fragmented workflows and email approvals. Moxo approaches it differently by offering a role-based portal where procurement, finance, and suppliers collaborate seamlessly.
Here’s how Moxo streamlines P2P:
Role-based portals: Procurement teams, finance staff, and suppliers each have dedicated, secure spaces.
Automated approvals: Requests move automatically through the right approvers, with built-in tracking and audit trails.
Exception workflows: 3-way match discrepancies are flagged, routed, and resolved without back-and-forth emails.
ERP sync: Purchase orders, invoices, and payments feed directly into your ERP for consistent records.
Traditional P2P vs. P2P with Moxo
A G2 reviewer in professional services described Moxo as “a game-changer for coordinating external approvals and invoice workflows without drowning in email threads.”
In practice, one accounting firm used Moxo’s accounting solution to shorten invoice turnaround time by 35%, while maintaining compliance with audit trails.
Streamline your P2P process with Moxo
An efficient procure-to-pay process is all about enabling faster, smarter decisions across procurement and finance. Companies that modernize P2P unlock measurable savings, stronger supplier trust, and better financial visibility.
Moxo simplifies it into one connected, automated flow, eliminating manual handoffs and data silos.
Using workflow automation, teams can move seamlessly from requisition and PO creation to invoice processing and payment readiness. Each step includes built-in approvals, reminders, and SLA tracking.
Integrations connect Moxo with ERP and payment systems, ensuring real-time data exchange and audit compliance. Suppliers interact directly through vendor portals, accessing order updates and submitting invoices securely.
With performance dashboards, finance and procurement leaders can track spend metrics, exception rates, and payment cycles—making P2P automation measurable, predictable, and fully traceable.
Curious how this works in practice? Explore Moxo’s workflow solutions or book a demo to see how you can reimagine your P2P process.
FAQs
What is the procure-to-pay process?
The procure-to-pay process is the workflow from requisitioning goods or services to approving, receiving, and paying suppliers.
Why is the 3-way match important?
It ensures invoices match purchase orders and goods receipts, preventing overpayments or fraud. Exceptions are resolved before payments are made.
How can automation improve procure-to-pay?
Automation routes approvals, flags mismatches, and syncs data with ERPs. This reduces errors, speeds up cycles, and adds transparency.
Can small businesses benefit from P2P automation?
Yes. Even small firms face invoice delays and approval bottlenecks. Platforms like Moxo for small business scale automation without heavy IT overhead.
Does Moxo replace an ERP?
No. Moxo complements your ERP by handling external collaboration and workflows, then syncing clean data back into your ERP system.
