Companies are constantly looking for ways to optimize costs, improve team collaboration and secure their operations. Many players are now turning to the Procure to Pay process automation. From purchase requisition to invoice payment, via the life cycle of a purchase order, this often time-consuming process becomes a tremendous opportunity to save time and reduce errors, as soon as the company is equipped with Purchasing software.
In this article, we offer a complete guide to everything you need to know about Procure to Pay process automation, its challenges and best practices, and we’ll look at how purchasing management software like Lapala can simplify and automate this end-to-end chain.
What is Procure to Pay process automation?
What is the Procure-to-Pay process?
The procure-to-pay (P2P) process involves all the steps involved from the purchase requisition (or internal requirement) to final payment to the vendors. It includes supplier selection, purchase order issuance, product reception, invoice validation and payment. The aim is to ensure that every purchase is seamless and traceable, and that budgetary and compliance constraints are respected.
It is often confused with related processes such as source to pay or order to cash, but procure to pay focuses exclusively on the flow of outgoing purchases and payments. Order to cash, on the other hand, covers the entire customer request processing chain, from order to collection. Source to Pay includes vendor identification and selection.
Procure-to-Pay process steps
Step 1: Purchase requisition
Once a need for goods or services has been identified. An employee enters a formal purchase requisition. This requisition details various information that will be reused for the rest of the Procure-to-Pay process: Category, Service, Amount, preferred vendor, ideal delivery date, etc.
The purchase requisition can also lead to the selection of a supplier through a call for tenders.
Step 2: Hierarchical approval of the purchase requisition
Depending on various conditions, a purchase requisition approval circuit will be followed. The various players, managers and directors can formally approve or reject the requisition.
Step 3: Issue purchase order and send to vendor
The purchase order is the official document that formalizes the purchase request to the chosen supplier. It specifies the amount, purchase and delivery conditions, delivery date and quantity.
Step 4: Order management
Once the order has been received, it is checked and classified as either compliant or non-compliant. In the event of non-conformity, the order is returned to the vendor, or negotiations begin.
Step 5: Invoice receipt and reconciliation
Once the invoice has been received, the company’s finance department compares it with the purchase order, then registers it and sends it for payment.
Step 6: Supplier payment
Depending on the payment terms negotiated, the finance teams plan and pay the vendor.
Optional step: Vendor assessment
Depending on the company’s level of maturity, a supplier assessment step is carried out. Beyond a strict evaluation, this step enriches the relationship with suppliers.
Definition Procure to Pay process automation
Procure to Pay process automation means replacing manual procedures (Excel spreadsheets, scattered e-mails, paper forms, handwritten signatures, multiple checks) with digital experiences that guide employees, automatically assign tasks, validate or alert in real time, and connect with existing systems (ERP, accounting software, CRM, etc.).
Here are a few examples of how to automate the Procure to Pay process:
- Help with requisition entry: an automated system allows you to enter several fields in the requisition. This saves time
- Efficient allocation: a task is sent to the right person, at the right time, without unnecessary clicks or interaction. Allocation depends on configurable conditions, such as amount, service, urgency…
- Information retrieval, in the same way that a step requires information retrieval, purchasing software automates and automatically displays the right information, at the right time.
- Automated e-mailing
- Filing and archiving of purchase orders and invoices
- Alert creation and payment notification.
- Sending data to accounting or ERP software
Why the Procure to Pay process automation is important?
Many companies still manage their Procure to Pay processes manually. The reasons are varied: habit, inertia, lack of investment or fear of change. Yet manual P2P can be extremely costly and risky:
Lack of visibility and traceability
Each employee can have a different spreadsheet. Approvals are made by e-mail or via piles of paper. This makes it difficult to follow up in real time, or to identify a specific problem (e.g. budget overrun, late invoice).
Multiple input errors and re-entries
Teams manually copy information (vendor details, invoice reference, amount) into different tools, multiplying the risk of error. The omission of a command line or a misplaced comma can lead to financial inconsistency.
Repetitive, time-consuming tasks
Searching for information scattered in e-mails, re-keying invoices, manually checking stocks… All these tasks eat into the teams’ time, diverting them from higher value-added missions.
Non-compliance and audit risk
The lack of traceability of requisitions and orders can be a problem, particularly when it comes to proving the validity of certain expenses in the event of a financial audit, or to justifying the selection of a vendor.
Delays and extra costs
A slow Procure to Pay process, with multiple manual round-trips, can lead to late deliveries and payments, trigger financial penalties, and damage supplier relationships.
Lack of budgetary control
Without centralized management, it’s difficult to know whether expenditure is exceeding the allocated budget, or to anticipate any over-spending. Financial decision-makers lack reliable indicators.
The benefits of Procure to Pay process automation
Reduce costs and lead times
By digitizing and automating the collection of requests, approval and issue of purchase orders, companies often see a reduction in processing times, sometimes divided by two or three. Delays are eliminated, thus avoiding potential additional costs (urgent deliveries, last-minute negotiations, etc.). What’s more, fewer data entry errors and duplicates mean lower administrative costs and fewer disputes.
Improved collaboration and internal satisfaction
Teams have fewer tedious tasks to perform, such as copying and renaming PDFs of invoices, and sending reminder e-mails. Managers can focus on more strategic tasks, such as sourcing or negotiation. Management always has a consolidated view of the budget and expenses in progress.
Real-time reliability and traceability
Procure to Pay process automation records each stage in a searchable history: date of request, approvals, acknowledgements, etc. This enhances reliability with regard to internal control teams, external auditors or certification bodies. This reinforces reliability with regard to internal control teams, external auditors or certification bodies. At the click of a button, you know where each order is, who has approved it, and what the status of stock or remaining budget is.
Payment security and fraud prevention
Automatic checks can be configured to avoid a ghost invoice or an unlisted vendor. Automation systems can compare the invoice with the purchase order and the goods receipt to trigger payment only if everything matches.
Regulatory compliance and auditing made easy
As already mentioned, centralization makes it easy for the company to produce proof of compliance, by making the history, supporting documents and signed approvals accessible. Financial audits are simpler, since all documents are in one place, and the approval history is traced.
Advanced management and reporting
Automation provides performance indicators (KPIs) on lead times, non-conformance rates, breakdown of expenditure by department, supplier performance, etc. Decision-makers can then make more informed choices. Decision-makers can then make more informed choices. For example, they can monitor the volume of purchases not covered by a framework contract, or the proportion of invoices received on time.
Steps and methodologies for implementing Procure to Pay process automation
Choosing the right purchasing software
Today, there are a variety of solutions for Procure to Pay process automation. The choice depends on several criteria:
- Company size: SMEs may be looking for a simple, modular solution, while larger companies opt for more complex, integrated solutions.
- Budget and billing model: user license, transaction subscription, implementation and integration costs. It’s all possible!
- Target features: management of purchase requisitions, catalogs, calls for tender, purchase order generation, invoice/order reconciliation, etc.
- Interoperability with your software: native connectors or APIs to link the platform to ERP, CRM or accounting software. Make sure you can connect your existing software.
- Ergonomics and no-code: ease of use is crucial to adoption. Lapala, for example, offers an intuitive interface, reducing the need for technical training. This will have a major impact on change management.
You will need to contact each software to collect this information.
Find the complete comparison of Procurement software by reading this article: the 9 best Procurement solutions for 2025
Implement and customize the chosen solution
Once you’ve chosen your solution, you’ll need to set up and customize your purchasing software. This step depends on the software you’ve chosen and your resources. However, you should be aware that some software publishers offer to help you with this, and that for some software, customization is called no-code, i.e. it can be customized without having to write a single line of code (so no need for an IT team).
This will enable us to create the first native software automations.
Integrate your company’s other software (ERP, accounting, CRM, etc.)
For the Procure to Pay process automation to run smoothly, it needs to interconnect with existing systems:
- ERP: for inventory management, cost accounting and planning (production, procurement).
- CRM: even if it’s more customer-focused, it can be useful for certain specific purchases linked to a customer project.
- Invoicing and accounting software: to generate invoices and track payments.
- Other: HRIS, electronic signature solutions, document archiving, etc.
Connectors or APIs ensure automatic data exchange, eliminating the need for re-typing. As a result, the order validated in Procure to Pay is directly visible in the ERP, and the invoice can be reconciled effortlessly.
Managing and training teams
Success also depends on team commitment:
- Raise awareness: explain the benefits of automated P2P (time savings, fewer errors, better traceability).
- Training: step-by-step instructions on how to use the platform to create a request or approve a purchase.
- Designate referents: choose people capable of resolving common questions.
- Communicate quick wins: for example, demonstrate that thanks to automation, approval times have been cut from 7 days to 2, or that data entry errors have been significantly reduced.
Measure performance and optimize
Once the Procure to Pay process has been automated, key indicators are monitored:
- Average requisition validation time
- Rate of invoices reconciled without error
- Volume of off-contract purchases
- Internal user satisfaction rate (quick surveys)
Each deviation identified enables us to adjust the setup and implement new rules or automations.
Best practices for a successful Procure to Pay process automation project
- Have an internal sponsor: Support from finance or general management facilitates decision-making, resource allocation and cross-functional communication.
- Start small and work your way up: Rather than aiming for complete coverage of all types of purchasing from the outset, it’s better to start with a limited scope.
- Involve users: operational staff, managers, accountants… all must be consulted to define the best circuit and exceptions.
- Supporting change: Clearly explain the purpose and benefits of change, organize a few training sessions, and provide simple support materials (tutorials or mini-guides).
- Define KPIs: measure the impact on deadlines, efficiency and user satisfaction as the project progresses.
Find all the best practices for procurement management by reading this article: 11 Procurement Best Practices in 2025.
The role of Procure to Pay process management software like Lapala
Introducing Lapala purchasing management software
No-code and ergonomics: No need to develop a complex interface or call in a costly IT team. Business teams can configure their own forms, fields and approval rules (amount > x = approval by manager).
100% customizable Procure to Pay process: Each company has its own way of operating, its own jargon, its own rules (e.g. validation by the finance department above a certain threshold, exceptional circuit for urgent purchases, etc.). Lapala offers a visual workflow designer where you can drag-and-drop steps, define conditions and configure notifications.
Interconnections: Lapala communicates via API with ERP, CRM, HRIS and accounting software, eliminating the need to re-enter data. For example, when an order is validated, it is automatically created in the ERP; the invoice is transmitted to the accounting department and into the accounting software.
Real-time reporting and indicators: Managers, finance managers or directors can monitor current purchase requisitions, validated orders, the status of each vendor, budget consumption by department…
Rapid deployment and ROI: Thanks to its no-code approach, Lapala can be up and running in a matter of days or weeks. Teams quickly see ROI through reduced manual tasks, fewer errors and delays, and better control of spends.
Lapala features for the Procure to Pay process
Here’s a non-exhaustive list of features available in Lapala software for Procure to Pay process automation.
Dynamic purchase request form
In just 5 minutes, you can create customized forms based on your expertise. And define the sequence of events.
Automated approval circuit
The sequences depend on conditions that can be configured according to your current usage and operation.
Complete management of the Procure to Pay process
Your teams will have guided experiences from requisition to receipt and payment of the invoice.
Monitoring dashboards and reporting
Find information quickly with reporting and Kanban views. Gain control and visibility.
Intuitive, user-friendly interfaces
Software that’s user-friendly for your employees facilitates adoption and delivers a rapid return on investment.
Automation with ERP and accounting software
Lapala automatically updates all your software, freeing your teams from these tedious and repetitive tasks.
And other Procure to Pay process automations
Sending mail
Mails are sent automatically at the right times and with the right information
Storage and rennomage
Purchase orders, quotations and invoices are automatically saved, filed and renamed
Reminders and alerts
Notifications are automated for all players. Tasks are distributed at the right times.
Conclusion – Procure to Pay process automation
The procure-to-pay process is an essential cog in any company’s wheel when it comes to controlling costs, ensuring financial compliance and avoiding delays or disputes with suppliers. However, manual management of this process can quickly turn into a time-consuming and error-prone headache.
Whether for SMEs or large groups, the benefits of digitizing and automating the Procure to Pay process are manifold: shorter lead times, higher productivity, more reliable flows, finer budget management, etc.
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