Purchase to pay cycle

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

Purchase to pay is the process of obtaining, purchasing, receiving, paying for and accounting for goods and services.

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