Procure to Pay

Last updated: June 20, 2026

Buying, end to end: the journey from a department's need to a paid supplier bill. Like its selling mirror, it crosses three modules, Purchase raises the documents, Inventory receives the goods, Finance settles the bill.

RQRequisitionVQQuotePOOrderGRReceivePIInvoicePYPaymentSpans Purchase (the documents), Inventory (goods in) and Finance (the bill and payment).
Spans Purchase (the documents), Inventory (goods in) and Finance (the bill and payment). simplified mockup
What you will learn
  • The six steps from a need to a paid vendor, and which module owns each
  • How the three-way match controls what you pay
  • The variations: direct orders, partial receipts, returns

The journey, step by step

1

Raise a requisition Purchase

A department asks to buy. The requisition is the approval gate, spending starts with a decision, and it can be pulled in automatically by a sales or production order.

Reference: Requisition →

2

Shop around and award Purchase

Send an RFQ to vendors, compare their quotes on price and terms, and confirm the winner, which generates the purchase order.

Reference: Vendor Quote →

3

Place the order Purchase

The purchase order is your commitment to buy, and the reference both receiving and the bill are checked against.

Reference: Purchase Order →

4

Receive the goods Purchase · Inventory

A goods receive brings the stock into a location and raises inventory, with an inspection step before it counts.

Reference: Goods Receive →

5

Match the bill Purchase · Finance

The vendor invoice is matched against the order and the receipt (the three-way match), then posts to payables.

Reference: Purchase Invoice →

6

Pay the vendor Finance

Issue a payment that knocks off the invoice and leaves the bank, clearing the payable.

Reference: Payment Processing →

Where it crosses modules

  • Purchase to Inventory – the goods receive raises stock; you never touch Inventory directly.
  • Purchase to Finance – the invoice posts the payable, and the payment clears it.

Common variations

  • Skip the planning – a known supplier can go straight to a purchase order.
  • Partial receipt and billing – receive and pay in stages against one order.
  • Something goes back – a debit note returns goods and reduces what you owe.
  • A bill with no order – utilities and ad-hoc costs go through a bill payment.

Related

Want to do it, not just understand it? Each step links to its reference page; for click-by-click steps, follow the How To guides.