Managing the procure-to-pay (P2P) process efficiently is vital for operational success. Yet, for many enterprises, P2P remains a complex, manual multi-step process involving sourcing, approvals, supplier communications, invoice matching, compliance tracking, and much more. If handled manually, inefficiencies, bottlenecks, and increased operational costs start to become a real problem.
Automating the entire source-to-pay lifecycle doesn’t just reduce manual work and operational overhead; it also accelerates cycle times and enforces compliance, all while improving supplier relationships. And, let me tell you a secret… it’s possible!
Although many solutions exist in the market, none fully address the entire Source-to-Pay process with end-to-end efficiency and seamless integration. However, by combining the best technologies for sourcing and procurement, supply chain financing, invoicing, and accruals automation, organizations can create a truly streamlined and intelligent process from start to finish.
The hybrid approach for procure-to-pay automation combines the power of best-of-breed solutions to deliver a seamless and intelligent procurement and finance experience. By integrating SAP Ariba, OpenText Vendor Invoice Management (VIM), and Auritas Intelligent Accrual, organizations can build a procure-to-pay automation and overall agile ecosystem that delivers both innovation and stability across every stage of the process.
This so-called “best-in-class solution for source-to-pay” by SAP provides companies with the flexibility to address both indirect and direct buyers, delivering best-in-class finance automation that accelerates approvals, reduces manual effort, and strengthens compliance.
With powerful tools, organizations enable smarter, more efficient P2P performance across the board. Explore the benefits:
- Procurement + Finance: Align supplier collaboration, sourcing, and contracting with intelligent invoice automation in a connected, frictionless workflow.
- Best-of-Breed Integration: Use market leaders-SAP Ariba for procurement, OpenText VIM for invoice automation, and AI Accrual for financial closing create a robust, end-to-end P2P architecture.
- Flexible for Indirect & Direct Spend: Handle both tactical purchases and strategic sourcing within a single system, reducing complexity and redundancy.
- Intelligent Automation: Minimize manual intervention and streamline processes, boosting productivity while ensuring compliance at every step.
- Audit-Ready & Compliant: Gain full traceability, with built-in governance and reporting that satisfy regulatory and internal audit requirements.
- Enhanced Visibility: Real-time dashboards and reporting tools provide greater transparency across the supply chain and finance functions.
Best-in-Class Solutions for Procure-to-Pay Automation
To build a procure-to-pay automation intelligently, companies need more than a one-size-fits-all platform. The hybrid approach works by combining specialized, enterprise-grade tools that each play a critical role in the P2P lifecycle. From sourcing and contract management to invoice processing and financial close, every stage requires purpose-built capabilities that integrate seamlessly and perform at scale.
Explore the core components of this hybrid architecture.
1. Spend Management – Enhanced Sourcing with SAP Ariba
SAP Ariba provides a robust cloud-based platform to manage sourcing, contracts, supplier relationships, and procurement activities. It digitizes upstream procurement, offering:
- Streamlined collaboration with suppliers on a centralized platform.
- Real-time visibility into sourcing and procurement activities.
- On-the-fly analysis through an intuitive, user-friendly interface.
SAP Ariba digitizes procurement operations at the front end of the P2P cycle. It supports everything from supplier onboarding and sourcing events to contract lifecycle management and the creation of purchase orders (POs).
By centralizing all supplier interactions (including RFQs, catalogs, PO confirmations, and change orders) within the Ariba Network, organizations maintain a single source of truth. This results in increased transparency, faster procurement cycles, and a dramatic reduction in errors stemming from manual processes.
2. Vendor Invoice Management – Automate Financial Processes with OpenText
Integrated tightly with SAP ERP and S/4HANA, OpenText Vendor Invoice Management (VIM) automates the downstream invoice-to-pay process. It provides:
- Intelligent invoice routing, validation, and exception handling.
- Real-time 2- or 3-way PO matching with workflow-based approvals.
- Enhanced productivity through reduced manual effort and processing delays.
Once an invoice is received, whether through the Ariba Network, email, or scanning, it is automatically routed into SAP, where OpenText Vendor Invoice Management (VIM) takes over. VIM intelligently validates invoices, matching against POs and goods receipts, and routes exceptions through an approval workflow. This automation speeds up processing times, ensures timely payments, and minimizes the risk of human error while maintaining full compliance with audit and reporting requirements.
3. Intelligent Accrual – AI-Powered Financial Compliance
Month-end accruals are often labor-intensive and error-prone. Intelligent Accrual automates and optimizes this process using rule-based logic and AI:
- Financial close is accelerated by up to 80%, improving both speed and accuracy.
- Accruals are calculated and posted automatically using real-time data.
- The system highlights exceptions and validates journal entries for compliance.
At the close of the financial period, Auritas Intelligent Accrual provides automation and precision where traditional methods fall short. It calculates and posts accruals using predefined rules and AI-powered logic based on real-time transactional data from SAP.
The centralized platform ensures that financial data is accurate, consistent, and traceable, allowing finance teams to identify anomalies, validate journal entries, and ensure GAAP compliance. This reduces manual effort and compresses the close cycle by up to 80%, empowering teams to focus on strategic finance initiatives.
4. Supply Chain Financing – Strengthen Supplier Relationships with SAP Ariba
Supply Chain Finance enhances liquidity and reduces working capital strain across the supply base while establishing a strong, valuable relationship with your suppliers:
- Suppliers receive early payment via buyer-initiated financing options.
- Buyers extend payment terms while maintaining strong supplier partnerships.
- The cost of capital is reduced for suppliers, creating a more resilient supply chain.
Optimize working capital and get insights into supplier risk management, helping companies to proactively assess and mitigate potential disruptions with SAP Ariba.
The Hybrid Play for Procure-to-Pay Automation
A key strength of the hybrid approach lies in the tight integration between procurement and finance systems. Purchase orders, goods receipts, and contracts created in Ariba automatically flow into the SAP backend, preserving data integrity throughout the process. Invoices submitted through Ariba are seamlessly transferred to VIM for validation and matching.
This real-time data synchronization ensures accurate financial postings, complete spend visibility, and performance tracking across the entire procure-to-pay lifecycle.
Agility, compliance, and cost efficiency in your P2P processes are non-negotiable; automation is no longer a luxury, it’s a strategic imperative. The hybrid approach offers the flexibility, intelligence, and scalability that modern enterprises need to optimize their procurement and finance workflows.
Discover why SAP is calling it a “best-in-class solution for source-to-pay” and how you can take advantage of it.
Explore how companies like Nvidia and Toro were able to achieve financial excellence with Auritas, with up to an 85% touchless invoicing process and a 13-day cycle-time reduction.
