The procure to pay process covers everything from deciding to buy something to paying the supplier: purchase request, approval, purchase order, receiving the goods, matching the supplier's invoice, and payment. In wholesale and manufacturing businesses it usually breaks at the hand-offs between systems: orders raised in one place, stock received in another, bills keyed into Xero or MYOB by hand, and nobody sure which invoices match which deliveries. The fix is rarely a new system. It's agreeing one way of working, then connecting the systems you already have so each step happens once and the matching happens automatically.
The procure to pay steps
- Need: someone needs stock, raw materials or a service.
- Request and approval: the request is approved by the right person, based on amount or category.
- Purchase order: a PO goes to the supplier with agreed prices and quantities.
- Receiving: the goods arrive and are checked against the PO; stock levels update.
- Invoice matching: the supplier's invoice is matched to the PO and what was actually received (the "three-way match").
- Approval to pay and payment: the bill is approved and paid on time, and the accounts are coded correctly.
When it works, each step happens once, in one place, and everyone can see where each order is up to.
Where it usually breaks
Approvals by email
Requests sit in someone's inbox. Urgent orders get placed without approval to avoid delays, and nobody has a record of who approved what.
Purchase orders outside the system
POs written in spreadsheets, emails or a separate purchasing tool that doesn't talk to the stock system or the accounts.
Receiving not recorded properly
Goods arrive, but part deliveries, substitutions and damaged stock aren't recorded, so stock levels and the PO no longer agree.
Bills keyed in by hand
Supplier invoices typed into Xero or MYOB, with someone checking them against paper delivery dockets. That's slow, and it's where duplicates and price differences slip through.
Landed costs left out
Freight, duty and other costs aren't added to the cost of the stock, so margins look better than they are. This is a particular problem for importers.
How to fix it, step by step
- Map how it actually works today, including the workarounds, with the people who do it.
- Agree approval rules: who approves what, based on amount or category, and where approvals happen.
- Pick one place for purchase orders, ideally the system that also holds stock.
- Record receiving properly, including part deliveries, so POs and stock stay accurate.
- Automate invoice capture and matching: bills read automatically, matched to the PO and receipt, with only the exceptions sent to a person.
- Connect it to Xero or MYOB, so approved bills post coded correctly without retyping.
Steps 1–4 are mostly agreeing how you work, and you can do them yourselves. Steps 5 and 6 are where systems need connecting.
When an app is enough
If you're a smaller business with straightforward purchasing, an approvals or bill-capture app connected to Xero or MYOB may be all you need. Many do approvals and invoice capture well at a modest monthly cost.
It's worth getting help when:
- purchasing, stock and accounts are in different systems that don't talk,
- you need proper three-way matching against receipts,
- landed costs need allocating to stock,
- you run several entities or warehouses,
- or apps have been tried and the gaps are still filled with spreadsheets.
That's the kind of work we do. See approval workflow systems, invoice processing automation and warehouse and inventory integration.
Frequently asked questions
What is the procure to pay process?
It's the full cycle from deciding to buy something to paying the supplier: request, approval, purchase order, receiving, invoice matching and payment. In accounting it's also called purchase to pay or P2P.
What is three-way matching?
Checking the supplier's invoice against both the purchase order and what was actually received, before paying. It catches price differences, short deliveries and duplicate bills.
Can Xero or MYOB handle procure to pay?
They handle purchase orders, bills and payments, but approvals, receiving and three-way matching usually need a stock system or an app alongside them, connected so information flows without retyping.
Where should a business start improving procure to pay?
Usually with approvals and bill entry. Agreeing approval rules and automating invoice capture removes the most chasing and retyping for the least effort.
If purchasing, stock and your accounts don't line up, book a free initial chat. We'll tell you whether an app will do it, or what connecting your systems properly would involve.