The Purchase-to-Pay Cycle: From Purchase Request to Supplier Payment

The purchase-to-pay cycle begins by identifying a purchasing need, creating and approving a purchase request, selecting a supplier, and issuing a purchase order. Upon delivery, inspect the goods and record the quantities received. Match the supplier invoice against the purchase order and goods receipt before approval.

Next, record the payable, schedule payment according to supplier terms, and update the supplier balance when payment is made. Three-way matching and separation of duties help reduce errors. Try Cash Cloud for free to explore purchasing, supplier, and inventory management tools.