Process Mining

Purchase-to-Pay is the process from a buyer's perspective of buying, receiving, paying and accounting for goods. The process starts with a purchase request and ends with the payment of the invoice and includes all confirmation and checking steps in between. It is one of the core processes in an organization and is typically performed by multiple departments. The most important artifacts of the Purchase-to-Pay process are purchase orders, receipt of the goods and the invoice. Purchase-to-Pay is also known as Procure to Pay.

Purchase-to-Pay covers the following main processes in the procurement lifecycle.

Buying: The process starts with a buyer from the company who wants to buy some goods. The buyer requests the purchase, using a purchase requisition. Procurement is involved to get the best deal. This could mean negotiation for a new contract or adapting to an already available contract. Procurement converts the requisition to a purchase order and makes sure the missing information is filled where needed. Procurement approves the purchase order (PO), which is then sent to the vendor.

Delivery: The warehouse department (if available) waits for the goods to be received. When goods arrive, the inventory is checked and updated. The goods are received by the initial buyer, who accepts the goods.

Payment: The finance department awaits the invoice to be received. When the invoice arrives, it is administrated. The invoice is paid by accounts payable. Accounting administrates the payment.

The Purchase order item process represents the procurement flow from the creation of purchase orders to the receipt of goods and services. It focuses on how items move through the procurement lifecycle before an invoice is posted.

Typical steps in this process include:

The Accounting document process represents the financial and invoice processing flow, focusing on how invoices are received, validated, matched, and paid.

Typical steps in this process include: