Benefits Of Source-To-Pay Solutions For The C-Suite
Procurement Portal Software
The role of procurement portal software as an essential component within source-to-pay (S2P) system is indispensable in the current corporate landscape. S2P solutions enable crucial digital transformation, connecting disparate stakeholders in more streamlined and efficient manner, allowing for greater oversight, auditability and control. To assist Chief Financial Officers (CFO) in taking advantage of this kind of business process, this guide will provide insight into the methodology for utilizing S2P solution for the procurement platform.
The Starting Point
First and foremost, CFOs must identify the type of S2P solution which best fits their business needs. This can be done by comparing and contrasting the potential solutions according to certain factors, such as category spend management, supply management, auction mechanisms, invoice automation and payment enabled workflows. Following thorough assessment, CFOs can decide which S2P solution best accommodates their needs, propelling them forward in the procurement process.
User Registration
Once an S2P solution is chosen, it is necessary to initiate the user registration process. This can often be done using an automated system; however, depending on the provider, manual activation may be needed. Obtaining the necessary credentials and roles to gain access to the platform is paramount to ensure the enrolled users are properly accredited to the specific accounts in question.
Vendor Registrations
Next, it is essential to populate the platform with essential vendors; this is typically done via an automated setup to facilitate faster adoption. Vendors are then categorised and given the necessary privileges for their respective accounts. Relevant information must be gathered from the vendors and stored on the platform, in order to implement further purchasing practises and consequently the relevant payment methods.
Pricing And Charges
In this step, CFOs must determine and set the pricing and charges which are applicable to certain vendor portfolio. This includes setting up the contractual arrangements between buyers and suppliers as well as any payment plans which may apply. In addition, parameters for payment due dates as well as discounts for early settlement of invoices should be predetermined.
Invoice Creation
Completed orders must then be generated into invoices using the selected S2P solution. This step is highly important in the tax reporting process and the relevant invoice management. Once the invoices are created, they can be processed faster and in more cost-effective ways.
Payment Generation
Finally, CFOs will have the capability to generate payments automatically from the invoices. By inputting the relevant payment methods, such as bank transfers, credit cards, etc. payments can be made quickly. Automation of payments is significantly important part of the process, as payments can then be disconnected with manual intervention, resulting in overall cost reduction.
Conclusion
In conclusion, by leveraging source-to-pay solution, CFOs are able to benefit from the numerous advantages of automated procurement processes. The guide provided above outlines the core steps of setting up and using source-to-pay solution. With well-implemented source-to-pay solution, CFOs will be in much better position to deliver value to the enterprise and remain in control of all procurement activities.
