Despite the innovative methods being cheaper and more efficient, we were not shocked much when a report said 80 percent of companies are still sticking to the old, manual methods for their purchases.
People resist accepting digital ways to work. Why? They like to stay connected to the traditional working methods as they find themselves fitting well into the system they truly are connected to. Right? Wrong!
No sentimental drama works in the world of competition and business. They just are not sure about the security associated with the digital methods of payment and purchases. Also, by nature, we are shy of entertaining innovative systems to an already working organization. Quite stable it is already, we think.
But when we say you are doing injustice to your organization, this is what we mean. Keeping it devoid of a smart, cost-effective, time-efficient, and easy-to-use system. Say no to avoiding. Because, a purchase to pay solution can take the maximum burden off of your heads, like
- Buy products or services
- Making sure the suppliers are genuine
- Ensuring the quality
- Preventing frauds and scams
- Outing efforts to initiate every step
- Knocking the doors of different departments for approval
And much more. You will have to do literally less than ten percent of it because a procure to pay system like Medius will do it all for you.
Steps That an Effective Purchase to Pay Solution Uses
A procurement solution should be smooth and transparent so that you stay satisfied and free of unnecessary concerns. Here is how it works.
Buyer Sets a Need
First and foremost, a buyer established the requirements and specifications for goods or services they want to buy. The procurement leaders then make TOR (terms of reference) and SOW (statement of works) by drawing out the key features the products should have.
A Requisition is Created
A requester from the procurement team then submits a requisition after all the requirements are finalized. Before this, the pricing and terms are approved and validated by the buyer again.
Requisition is Approved
Here, based upon the budget, specifications, and demands of the products, the requisition is approved or rejected to be submitted again after making corrections. If approved, the budget authorization is granted.
A Purchase Order is Created
In this step, from the requisition that is approved, a purchase order is drawn and provided to the supplier.
The Suppliers Start Working on the PO
The suppliers receive the purchase order and start preparing it to be delivered on the set time and the decided terms. In case the supplier finds a problem with the purchase order, they can start negotiations or simply reject it too, leaving an option for other suppliers.
Delivery and Goods Receipt
The supplier delivers the products to the buyer and they go through a detailed examination from the buyer to check whether they are up to the mark or not. The buyer can tally the services delivered with that of the terms in the contract. Once approved, a goods receipt is issued.
An Invoice is Issued by the Supplier
The supplier, after a goods receipt is approved, issues an invoice for the payment to be disbursed. During this process, a three-way match is conducted which means the finance team checks the following documents to confirm that the order was processed transparently.
-the purchase order created by the buyer
-the receipt of the goods approved by the buyer
-the invoice issued by the supplier
Buyer Pays as per the contract terms
The procurement team proceeds with the payment process as per the decided payment method and the said terms in the contract.
The concern of falling prey to scams, malware, or other online threats is valid. But the P2P process of Medius as said above, is transparent, and secure. Their software made with state-of-the-art technology integrates AI to make the process work automatically once you have initiated. So, use this web-based solution for your payments will provide you everything under one umbrella with minimum effort and cost. Check out the details of its features here.