Procure to Pay

In the Procure-to-Pay (P2P) lifecycle, Smorgas AI Workflow Solutions serve as the "connective tissue" between procurement, receiving, and finance. While traditional P2P suites focus on digitizing documents, Smorgas AI focuses on decision-making and resolution. 

By treating the P2P cycle as a goal-oriented process rather than a linear sequence of steps, Smorgas can drive the following improvements:

The “Request to PO” Phase: Autonomous Requisitioning

Instead of employees navigating complex catalogs, Smorgas acts as a concierge:

  • Smart Categorization: Smorgas interprets natural language requests (e.g., "I need 20 laptops for the new interns") and automatically maps them to the correct GL codes, cost centers, and approved vendors.
  • Policy Enforcement: It checks the budget and internal policies in real-time. If a request is out of policy, the agent doesn't just block it — it suggests a compliant alternative (e.g., "This vendor isn't approved, but we have a contracted rate with Company X for similar items").

The "PO to Receiving" Phase: Proactive Expediting

One of the biggest gaps in P2P is the "black hole" between sending a PO and receiving goods.

  • Autonomous Follow-ups: Smorgas will track the "Expected Delivery Date." If no shipping notice is received 48 hours prior, it automatically contacts the vendor for an update.
  • Discrepancy Management: If a shipment arrives short or damaged, Smorgas can initiate the Return Merchandise Authorization (RMA) process and hold the payment in the ERP system until the replacement is confirmed.

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The "Invoice to Pay" Phase: Cognitive Three-Way Matching

Traditional systems often fail to match when descriptions or units of measure differ (e.g., "Case" vs. "12-pack").

  • Semantic Matching: Smorgas AI uses reasoning to understand that "12x 500ml bottles" on an invoice matches a "Case of water" on a PO.
  • Dynamic Discounting: Smorgas monitors cash flow and vendor terms. It can autonomously decide to pay an invoice early to capture a 2/10 Net 30 discount if the cost of capital allows for it, maximizing "free" savings.

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Master Data & Vendor Management 

Instead of employees navigating complex catalogs, Smorgas acts as a concierge:

  • Smart Categorization: Smorgas interprets natural language requests (e.g., "I need 20 laptops for the new interns") and automatically maps them to the correct GL codes, cost centers, and approved vendors.
  • Policy Enforcement: It checks the budget and internal policies in real-time. If a request is out of policy, the agent doesn't just block it—it suggests a compliant alternative (e.g., "This vendor isn't approved, but we have a contracted rate with Company X for similar items").

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P2P Evolution Comparison

Stage

Manual P2P

Automated P2P (RPA)

Smorgas

Requisition

Stage

Paper / Email forms

Manual P2P

Dropdown menus / Catalogs

Smorgas

Conventional / Intent-based

Matching

Stage

Human eye

Manual P2P

Exact string matching

Semantic reasoning & logic

Exceptions

Stage

Emailing back and forth

Manual P2P

Flagged for human review

Smorgas

Agent resolves with vendor

Payments

Stage

Batch processing

Manual P2P

Scheduled transfers

Smorgas

Value-optimized timing

The Business Impact of Agentic P2P

Transforming how high volumes and transactions are managed.

  • Touchless Processing: Moving from 30% to 90%+ touchless invoice processing by resolving minor discrepancies without human intervention. 
  • Capture of Lost Discounts: Eliminating late fees and maximizing early payment discounts. 
  • Reduced Procurement Cycle Time: Cutting the time from "need identified" to "order placed" from days to minutes.