Purchase to pay cycle

(P2P).

The purchase-to-pay cycle is about the trade finance cycle between an organisation and its suppliers.

The primary concerns of the purchasing organisation are normally with:

1. Mitigating delivery risk
2. Extending the payment cycle as far as commercially reasonable.

The purchase to pay cycle is sometimes known as the 'procure to pay cycle'.

See also

• Payables management
• Creditor days
• C2C
• Order to cash cycle
• Trade finance