As a manufacturer, you probably know that buying materials is not just about placing orders with suppliers.
Production uses raw materials; Stores uses spare parts; Maintenance uses consumable items; and Finance must record and pay each expense accurately. If all of those functions are completed using email, spreadsheets and manual approval processes then it will be difficult to track what was purchased.
This is where Procure-to-Pay (P2P) software comes in.
When trying to find the ideal P2P software for manufacturing, simply comparing the various features will not be sufficient. You should also look at how well the software can connect your different departments (procurement, store, quality, and finance) together. This integration will allow you to monitor each transaction that occurs within the purchasing process from initial request through to the final payment.
SEPFUST P2P Software provides a process-oriented approach to your procurement activities: from purchasing request to approval, RFQ, purchase order, gate entry, quality inspection, GRN, invoice and payment.
What Is P2P Software?
P2P is short for Procure-to-Pay (or Purchase-to-Pay), and it refers to the entire procurement process that begins with identifying a need and ends with making payment to the supplier.
A typical P2P cycle looks like this:
Purchase Requisition → Approval process of the Purchase Requisition → Request for Quote (RFQ) → Issue the Purchase Order → Gate Entry → Quality Control Inspection → Receive items on the Purchase Order and generate a Goods Received Note (GRN) → Receive the Supplier's Invoice → Pay the Supplier's Invoice
These types of operations usually take place through email, spreadsheets and ERP (Enterprise Resource Planning) transactions when there isn't a peer-to-peer system in place.
Team tracking of each step is enhanced by a connected workflow. Teams can also keep better track of purchases.
Why Do Manufacturing Companies Need P2P Software?
Manufacturers often order raw materials, spare parts, packaging and maintenance items. If there are delays in ordering these items or receiving them, it could impact production schedules.
After a material is received, there may be requirements for it to pass through gate entry, quality inspection, and quantity verification prior to recording the Goods Receipt Note (GRN).
A structured P2P process helps teams track:
- Pending purchase requests and approvals
- Active RFQs and released POs
- Materials awaiting gate entry or quality inspection
- Pending GRNs
- Invoices awaiting approval
- Payments due
This gives procurement, stores, quality and finance a clearer view of every purchase.
What Is the Best P2P Software for Manufacturing?
The best solution should support your company's complete purchasing process.
1) Purchase Request Management
Employees can raise purchase requests with item details, quantity, required date, department, cost centre and supporting documents.
2) Request Review and Approval
Requests move through configured approval workflows based on company policies, purchase value and department requirements.
3) RFQ Management
Procurement can request quotations from multiple suppliers and maintain their responses in one organised workflow.
4) Supplier Comparison
Compare suppliers based on price, delivery timelines, quality, payment terms, availability and past performance.
5) Purchase Order Management
Once a supplier is selected, the purchase order records the agreed quantities, prices, taxes, delivery terms and payment conditions.
P2P Software for Manufacturing Procurement
Manufacturing procurement also includes receiving materials and checking their quality.
Consider a factory ordering 1,000 units of a component.
The supplier provides the product, and security logs the Gate Entry. Next, the quality team checks the product for compliance with the required standards. For example, if there were 1,000 units delivered, and 950 were acceptable, while 50 were unacceptable.
Stores will record the accepted quantity of goods with the help of the Goods Receipt Note (GRN). If the supplier invoices for 1,000 units, then finance can determine the variance among the quantities that were ordered, received, and invoiced prior to allowing for payment.
A connected P2P workflow allows teams to follow these processes, and to find answers to inconsistencies faster.
Purchase Order, GRN and Invoice Matching
Three-way matching checks the relationship between the Purchase Order, Goods Receipt Note and Supplier Invoice.
For example:
- PO: 1,000 units
- Gate Entry: 1,000 units arrived
- Quality Inspection: 950 accepted, 50 rejected
- GRN: 950 units recorded
- Invoice: 1,000 units billed
The discrepancy should be reviewed before invoice approval.
The first step is that when the gate receives a delivery, it will be recorded. Then, after the materials have been inspected, the result of that inspection will be documented. Finally, if the materials are acceptable, a GRN (Goods Receipt Note) will be created. All three of these documents will help verify the invoices that are generated.
SEPFUST is an automated accounts payable system that provides other features such as: Invoice processing, PO matching, Validation, Exception handling, and ERP Posting.
Invoice Processing in the P2P Cycle
Finance teams generally review and confirm that the vendor information is accurate; they also check to see if the invoice number, date, purchase order number (PO #), quantity, rate, tax and payment terms are correct.
SEPFUST Invoice Processing Automation employs an AI-based OCR technology for extracting and verifying invoice details. This solution can process both Purchase Order (PO) and non-PO invoices, match the extracted details with relevant purchase orders, approve or reject invoices based on pre-defined workflow rules, and post approved invoices directly into the customer's Enterprise Resource Planning (ERP) system, including popular ones like SAP, Oracle, Tally, etc., as well as other types of accounting systems.
You can learn more about 👉SEPFUST Invoice Processing Automation.
How SEPFUST P2P Software Works
SEPFUST P2P Software supports a structured procurement workflow.
Step 1: Purchase Request
A department raises a request with item details, quantity and required date.
Step 2: Request Review and Approval
The request moves through the configured approval process.
Step 3: RFQ
Procurement collects supplier quotations and compares offers.
Step 4: Purchase Order
The selected supplier receives a purchase order containing the agreed terms.
Step 5: Gate Entry
A record of each material arriving will be created which includes the date/time of arrival along with other pertinent information such as vehicle/delivery information.
Step 6: Quality Inspection
The material will be assessed to determine if it meets the necessary standards. Based on the results of this assessment, the material will either be accepted, rejected, or kept on hold until a more thorough evaluation can be made.
Step 7: Purchase Receipt and GRN
The received amount will be documented using the GRN as an indicator of inventory and verification of the invoice.
Step 8: Invoice and Payment
The Finance Department reviews each vendor's bill for accuracy (against the Purchase Order [PO], Goods Receipt Note [GRN] and all related documentation) prior to authorizing payment.
Key Features of SEPFUST P2P Software
SEPFUST's P2P workflow supports the following procurement activities:
- Purchase Request: Create and manage requirements from different departments.
- Request Review and Approval: Route requests through configured approval workflows.
- RFQ: Manage quotation requests and supplier responses.
- Purchase Order Management: Create and track approved purchase orders.
- Purchase Receives & GRN: Record material receipts and maintain GRN information.
- Gate Entry: Record incoming material deliveries at the factory or warehouse.
- Quality Inspection: Inspect support materials prior to acceptance and record GRN if applicable.
- Invoices and Payments: Manage supplier invoices and payments within the procurement process.
- Process Visibility: Give Procurement, Store, Quality, Finance, and Management better visibility into purchasing.
Why Replace Excel-Based P2P Processes?
Excel is a great tool for simple tracking, but it can become cumbersome as the volume of purchases increases.
By keeping each spreadsheet separate for the following functions, it is more difficult to recognize when there are delays in any one area of the process: Requests Quotations POs Gate Entries Inspections GRNs Invoices Payments
The P2P system brings together all of those areas to help teams find out if they are waiting for approval of a purchase, inspection of materials, receiving of goods/materials or payment for goods/materials without having to go through several different departments.
Benefits of P2P Software for Manufacturing
- Better Purchase Visibility: Track purchases from the initial request to final payment.
- Faster Approvals: Reduce manual follow-ups between departments and approvers.
- Better Procurement Control: Ensure purchases follow defined approval rules.
- Reduced Manual Work: Spend less time updating spreadsheets and checking transaction status.
- Better Invoice Verification: Compare your purchase order, received receipt and invoice for any differences.
- Improved Documentation: Keep a more precise log of purchasing, gate entry, inspection and receipt actions.
- Better Coordination: Connect procurement, stores, quality and finance through a structured workflow.
P2P Software and ERP Integration
If you currently use SAP or Oracle or Custom ERP, then integrating your ERP with your P2P workflow is essential. You want your P2P workflow to enhance and support your current business practices instead of adding an additional disjointed process.
SEPFUST provides ERP connected Automation. Integration can assist manufacturers in linking their procurement process to receiving of materials, GRNs (Goods Received Notes) and processing of invoices, based upon the configuration of the integrated system.
What Should You Check Before Choosing P2P Software?
Before selecting a P2P solution, ask these questions.
1) Does it cover the complete P2P cycle?
Check for purchase requests, approvals, RFQs, POs, gate entry, quality inspection, GRNs, invoices and payments.
2) Can approval workflows be configured?
Different purchases may require different approval levels.
3) Can procurement and finance work together?
Purchasing information should connect with invoice verification and payment processes.
4) Can it handle GRNs?
The system should support recording received quantities for inventory and invoice verification.
5) Does it support gate entry and quality inspection?
Check whether incoming deliveries and inspection outcomes can be recorded before GRN creation.
6) Can it integrate with the existing ERP?
Integration can reduce duplicate data entry and improve information flow.
7) Does it maintain an audit trail?
Purchase records should help establish who requested, approved, ordered, inspected, received and processed the transaction.
Why Choose SEPFUST for P2P Automation?
SEPFUST provides automated solutions to manage financial, tax, procurement, ERP, and business processes.
Connected procurement and invoice automation will allow manufacturers to better coordinate their purchasing activities with accounts payable.
SEPFUST Automated Invoice Processing includes support for: data extraction, verification, three-way matching, approval processes, identification of duplicate invoices, managing exceptions and posting to your ERP.
This helps businesses build a more organised procurement and invoice processing workflow.
Who Can Use P2P Software?
P2P software can support businesses across:
- Automotive manufacturing
- Chemicals
- Cement
- Steel
- Engineering
- Pharmaceuticals
- FMCG
- Electrical equipment
- Packaging
- Consumer products
- Industrial manufacturing
It is particularly useful for companies managing multiple plants, warehouses, departments or business units.
Conclusion
What is the best P2P software for manufacturing?
This is the software that brings together all steps of your purchase order flow - from when you make the first request until you pay the supplier.
Manufacturers need to find P2P software with the ability to handle purchase requests, approval processes, RFQs, purchase orders, gate entry procedures, quality control inspections, goods received notes, invoices and payment processing through a well-defined process.
SEPFUST P2P Software assists organizations with their purchasing activities and other relevant processes such as ERP and Invoice Automation.
When your company's purchasing processes are based on manual tracking (Excel sheets, email, etc.) with manual follow-up; you may want to consider implementing a structured workflow so that you can have increased visibility into the status of all of your purchases and increased control over the entire purchasing process.
Unify your entire procurement process from purchase request to payment with SEPFUST.
Try SEPFUST P2P Software for Manufacturing! Manage purchase requests, approvals, RFQs, purchase orders, gate entry, quality inspection, GRNs, invoices and payments through a structured procurement workflow.
