What is the sequence of steps in the procure to pay business process?

• A. Purchase order, good receipt, invoice receipt, payment
• B. Purchase requisition, payment, good receipt, invoice
• C. Purchase requisition, purchase order, good receipt, invoice receipt, payment
• D. Good receipt, invoice receipt, purchase order, payment

Answer: (C)

The procure to pay business process is a critical sequence of steps that an organization follows to acquire goods and services while managing the financial transactions associated with those acquisitions. The correct sequence captures the logical flow of this business process as follows:

1. Purchase Requisition: This is typically the first step where a need for a product or service is identified, and a request is made to the procurement department.

2. Purchase Order: Following the approval of the requisition, a purchase order is generated and sent to the vendor. This legally binds the organization to the purchase.

3. Goods Receipt: Once the goods or services are delivered, a goods receipt is recorded to verify that the order was fulfilled as per the purchase order. This step involves checking the quality and quantity of the delivered goods.

4. Invoice Receipt: After receiving the goods, the supplier sends an invoice, which is then matched against the purchase order and the goods receipt for accuracy before payment is processed.

5. Payment: Finally, upon successful validation of the invoice, payment to the supplier is made to complete the transaction.

Option C correctly outlines this comprehensive sequence, illustrating the necessary steps from the initial request for goods or services to the final payment to the