---
sourceDocument: Yokohama Finance and Supply Chain
sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/yokohama/source-to-pay-operations

 Release :

    - yokohama

ft:locale :

    - en-US

ft:publication_title :

    - Yokohama Finance and Supply Chain

ft:clusterId :

    - stpop

bundleId :

    - stpop

workflow :

    - Employee


---

# How L2 punchout works

# How L2 punchout works {#ariaid-title1}

* Release version: Yokohama
* 
* Updated July 31, 2025
* 
* ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 1 minute to read

Level 2 (L2) Punchout enables buying organizations to search for and discover Punchout items directly within their procurement application, eliminating the need to search each supplier's site individually.

## Key APIs used in L2 punchout {#level-two-punchout__section_psk_f25_bgc}

* Search API: Enables SPO to query multiple Punchout systems and display product listings within the application.
* Product API: If supported by the Punchout system, this API allows SPO to retrieve detailed product information.
* Order API: If supported by the Punchout system, this API enables users to complete the checkout process within SPO itself.
{#level-two-punchout__ul_zhq_g25_bgc}

## Multi-supplier support {#level-two-punchout__section_asc_h25_bgc}

You can configure SPO with multiple Punchout endpoints. For more information, see [Punchout configuration in SPO](https://servicenow-prod.fluidtopics.net/RTSRLdn0r8ghDfWBwCMlQw "You must configure punchout for third-party suppliers.").

When a search is initiated, SPO queries all configured systems and presents a consolidated set of results to the user.

## Search and checkout flow {#level-two-punchout__section_qdm_t25_bgc}

* Users can search for items and view a consolidated list of products returned from all configured Punchout systems.

* Selected products are added to the cart, and checkout is completed within SPO. Upon checkout, a Purchase Requisition (PR) is created. Once approved, a Purchase Order (PO) is generated and synced to the corresponding Punchout system.

{#level-two-punchout__ul_vny_hf5_bgc}

## L2 punchOut flow {#level-two-punchout__section_rwh_lf5_bgc}

The Level 2 Punchout flow includes the following steps:

* When a search term is entered, SPO's backend queries all configured search endpoints, and the resulting product list is displayed in ShoppingHub.
* If any of the returned payloads lack required mandatory fields, the corresponding results are excluded from further processing.
* If the Punchout system supports the Product API, detailed product information can be retrieved from the supplier.
* After products are added to the cart and the user checks out, SPO creates a Purchase Requisition and, upon approval, a Purchase Order.
* The PO is then synced with the Punchout system using either of the following:
  * cXML payloads, if the supplier supports a cXML order endpoint.
  * Order API, if the supplier supports API-based order submission.
  {#level-two-punchout__ul_t5k_bg5_bgc}
* The target Punchout system is determined based on the supplier information in the PO. SPO retrieves the relevant third-party configuration from the Third-Party Registration table.
* An extension point, sn_spend_intg.ThirdPartySystemApiExtension, is available to support integration with various Punchout systems:
  * Users must configure Punchout system details in the Third-Party Registration table.
  * Users must also implement the above extension point to enable integration with specific Punchout systems.
  {#level-two-punchout__ul_ggq_cg5_bgc}

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The following figure illustrates the L2 Punchout flow.