Undoubtedly the biggest difference between the procure-to-pay vs source-to-pay processes lies in the initial step of each process. It is these separating features that we are going to look at below. 3 Differences Between S2P and P2P?īecause of the great similarities between procure-to-pay vs source-to-pay, a lot of people find it difficult to see that the two processes do have differences that serve to distinguish them. Let’s examine three of the core differences. Now, what are those elements that set apart procure-to-pay vs source-to-pay? This is done in particular through the automation of these processes thanks to e-procurement solutions. The major objectives of the purchase-to-pay process revolve around creating value and realizing cost savings. We’re being told that the P2P process is an end-to-end process that begins with the requisitioning of goods and services and ends with settling of accounts.

“… process flow from the requisition and purchase through to payment and accounting for purchases.” Relying once again on a definition provided by CIPS, we see that procure-to-pay, also known as purchase-to-pay, is a: Now, looking at procure-to-pay, what is it all about? What is Procure-to-Pay? This unique aspect of the source-to-pay process enables procurement teams to develop a spend management solution that’s even more streamlined and integrated.Īmong some of the goals of the source-to-pay process are the refinement of supply chain efficiencies, improvement of vendor-buyer relationship, and consolidation of internal control measures. strategic sourcing – an aspect that’s not common in the procure-to-pay process.

Simply put: one of the major distinguishing features of the source-to-pay process is the additional layer that’s added – i.e. “… an improved version of spend management compared with P2P as it includes solutions for sourcing.” The Chartered Institute of Procurement and Supply (CIPS) defines source-to-pay as: And it is one of the roles of a sourcing specialist on a procurement team to understand them.īut what exactly is S2P and how does it differ from P2P? We’re here to break it down. One such term is source-to-pay (S2P) which has its roots in procure-to-pay. What is the difference between procure-to-pay vs source-to-pay?Īs procurement systems and processes gradually take on more technological aspects new terms emerge.

Procure to pay process sap