Where’s the Block? Why Visibility Into P2P Exceptions Should Be a CFO Priority

When a purchase requisition sits unapproved or a supplier payment is delayed due to a missing receipt, most teams treat it as routine. But these small breakdowns, multiplied across a business, can quietly erode financial health. Exceptions in the Procure-to-Pay (P2P) process, such as approval delays, mismatches, off-contract purchases, or late payments, cause friction across finance and procurement. The question is: can you spot them before they become costly?

What Are P2P Exceptions?

Exceptions are disruptions that prevent a smooth flow from procurement to payment. They often occur as:

Approval delays for requisitions or POs
Purchases outside approved contracts
Missed or overdue goods receipts
Invoices placed on hold
Late payments

They appear small but collectively introduce risk, increase effort, and strain supplier relationships.

Why Do They Happen?

Common causes include:

Overloaded or unavailable approvers
Incomplete procurement documents
Manual processing
Poor communication across teams
Disconnected systems

These issues persist not because teams lack effort, but because they lack visibility.

What Visibility Changes

Visibility into P2P exceptions transforms exception handling from reactive to proactive. Here’s how it helps:

1. Better Decisions

Know the root cause, not guesses but facts. Understand why invoices are stuck or spend is out of policy.

2. Faster Resolution

Surface delays and bottlenecks in real time. Reduce rework and shorten cycle times.

3. Stronger Supplier Collaboration

Address issues early and with transparency. Avoid disputes and missed opportunities.

4. Cost Control

Limit off-contract purchases, prevent interest penalties, and enforce negotiated pricing.

5. Compliance Confidence

Track policy adherence and provide auditors with accurate, timely data.

Metrics That Matter

Some of the metrics you can track to manage exceptions with precision :

Requisition and PO approval time
Requisition to PO cycle
PO to receipt time
Receipt to invoice cycle
Days Payable Outstanding (DPO)
Percent of maverick spend

Real-World Results

A U.S. port authority used exception analytics to reduce invoice aging by 25 percent in one quarter.
A European media firm redirected 70 percent of maverick spend back to preferred vendors.

These results were not driven by policy reminders. They were enabled by visibility.

Final Thought

P2P exceptions are unavoidable. But visibility makes them manageable, measurable, and solvable. The faster your teams can identify what is holding up a transaction, the faster they can act and improve outcomes across finance and procurement.

See It in Action

Want to see how your team can act on exceptions faster? Book a demo with a SplashBI expert to explore real-time P2P visibility and exception analytics tailored to your environment.