Source-to-pay process
Editable source-to-pay process swimlane from “Define need, scope and budget owner” through “Sourcing route and budget approved?” to a documented outcome. Includes named roles, exception paths and evidence.
What the source-to-pay process process is
The workflow starts at “Define need, scope and budget owner”. The next two steps, “Agree sourcing and contract strategy” and “Prepare requirements and competition route”, establish the information needed for a defensible decision. The chart assigns each handoff to a role and retains the evidence at closeout.
The main gates are “Sourcing route and budget approved?” and “Award and contract terms approved?”. The first branch leads to revise requirements or secure funding; the second can require resolve bid, risk or contract objection. Connect sourcing approval to the purchase order and Finance matching records.
What this flowchart covers
In this template
- Define need, scope and budget owner followed by agree sourcing and contract strategy.
- Sourcing route and budget approved? with a route for revise requirements or secure funding.
- Supplier responds to issued sourcing event and evaluate supplier, risk and contract terms as separate supplier and internal handoffs.
- Award and contract terms approved? with resolve bid, risk or contract objection when the decision fails.
- Approve award, issue PO and receive goods, match invoice, resolve variances and release payment and record supplier performance and realized value as the controlled closeout.
When to use this template
- Use it to agree who owns “Define need, scope and budget owner” and what information the next role needs.
- Use it when the answer to “Sourcing route and budget approved?” is unclear or decisions are made outside the record.
- Use it to make “Record supplier performance and realized value” visible in an audit or operational review.
How it works
Assign decision owners
Replace the Business owner, Procurement, Supplier, Accounts payable, Approver lanes with your actual functions. Keep the owner of “Sourcing route and budget approved?” separate from the requester where your authority rules require it.
Configure the gates
Connect sourcing approval to the purchase order and Finance matching records. Define what evidence is sufficient for “Award and contract terms approved?” and who may authorize an exception.
Connect downstream records
Link record supplier performance and realized value to the relevant purchase order, contract, supplier record or operational case. Set retention and review dates under your document policy.
Frequently asked questions
What does the source-to-pay process template include?
It covers define need, scope and budget owner, prepare requirements and competition route, evaluate supplier, risk and contract terms, and record supplier performance and realized value, with two labelled decisions and rework paths.
Can the decision rules be changed?
Yes. Connect sourcing approval to the purchase order and Finance matching records. Edit the gate labels, swimlanes and return paths before using the chart in your organization.
What evidence should be retained?
Keep the input to “Sourcing route and budget approved?”, the evidence behind “Award and contract terms approved?”, approvals or exception decisions, and the closeout record: “Record supplier performance and realized value”.
Where this process fits
In most operations this process hands off to Procure-to-pay (P2P) process flowchart (need to payment).
Comes after
- Procure-to-pay (P2P) process flowchart (need to payment) — Procure-to-pay process flowchart from an identified need to a paid supplier: requisition, budget and delegated-authority approval, contract check, PO issue, receipt, three-way match, no-PO exceptions and the payment run.