How-to-benefit-from-P2PI suspect it’s happened to all of us. The invoice that appears out of the blue unexpected and with no budget from a supplier you’ve never heard of. Organisations are scrutinising their spend like never before, keeping a tighter hold of the purse strings is now high on many businesses “to do” list.

So how do you increase control, reduce the costs and avoid the unexpected?

Many people are turning to “pre-purchase” approval solutions, where previously only once an invoice was received would an approval process, be that electronic or paper-based be employed.

Pre-purchase approval processing allows organisations to stop the purchase being made in the first place if the items/services aren’t correct, deemed unnecessary, too expensive or would take you over budget.

Approvers can ensure that the organisation is placing orders with the right suppliers for the right products/services, those that offer the best value for money, rather than employees purchasing from the first supplier that comes to mind, this in itself can create substantial savings.

Once the approval is confirmed the organisation can place the order with the supplier and have visibility of upcoming liabilities that will be incurred, and assuming the invoice matches the order the “post purchase” approval that previously was required, may no longer be necessary.

Adding processes to control spending is beneficial, and no doubt your costs will decrease through the use of the new approval process and rejection of unnecessary/ unjustified spend, but what you don’t want to do is implement a process that becomes so paper-intensive, disjointed or time-consuming that your spending more man-hours and hence money on the process than you are saving.

There are multiple options with Microsoft Dynamics GP that can help you to take control of your purchase process and drive down your spend, from functionality provided within GP for basic payables transaction batch or purchase order approval, through to enterprise procurement solutions that are finance system agnostic and go beyond just managing your approval process for purchase orders and invoices, to include expense claim approval, supplier onboarding and contract management, so there is a solution suitable for all requirements to help automate the process you wish to put in place.

Take a closer look at the options in our webinar on Purchase to Pay (P2P) at www.advantage.co.uk/events.

About Matthew Fleming. Matt has over 20 years’ experience in the IT industry working with small medium sized and enterprise clients, with a consultative approach, to better understand requirements and deliver appropriate, scalable and cost reducing business solutions. He’s been working with Microsoft Dynamics ERP and CRM since 1999, providing these to a range of industries including manufacturing, distribution, retail, professional services and finance.