---
title: Understanding punchout
description: Punchout is a technology that connects a buyer's eProcurement application to third-party supplier eCommerce sites. This connection enables direct catalog access while maintaining procurement controls.
locale: en-US
canonical_url: https://www.servicenow.com/docs/r/australia/source-to-pay-operations/sourcing-and-procurement-operations/punchout-overview.html
release: australia
product: Sourcing and Procurement Operations
classification: sourcing-and-procurement-operations
topic_type: concept
last_updated: "2026-09-10"
reading_time_minutes: 3
breadcrumb: [Explore, Sourcing and Procurement Operations, Finance and Supply Chain]
---

# Understanding punchout

Punchout is a technology that connects a buyer's eProcurement application to third-party supplier eCommerce sites. This connection enables direct catalog access while maintaining procurement controls.

Punchout enables a buyer's employees to shop on third-party supplier eCommerce sites. They complete their purchase in their organization's eProcurement application, where approval workflows can be applied and spending can be tracked.

In level 1 punchout, only the search functionality of the punchout catalog is available. Upon redirection to the third-party punchout supplier's site, the shopper adds items to their cart. They are then redirected to ServiceNow to complete the order details.

With level 2 punchout catalogs, customers can search and order products directly in the procurement system. Redirection to the punchout system is not required.

-   **[Punchout configuration in SPO](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/punchout-configuration-spo.md)**  
Punchout configuration enables third-party suppliers to integrate their catalogs with SPO.
-   **[How L1 punchout works](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/level-one-punchout.md)**  
In the Level 1 \(L1\) punchout, SPO and the punchout supplier communicate using the cXML protocol.
-   **[Establishing connection between SPO and the supplier punchout system](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/spo-punchout-connection.md)**  
SPO and the supplier punchout system use PunchOutRequest and PunchOutResponse payloads to establish the connection.
-   **[How L2 punchout works](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/level-two-punchout.md)**  
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.

**Parent Topic:**[Exploring Sourcing and Procurement Operations](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/exploring-spo.md)

**Related topics**  


[Shopping Hub]()

[Shopping Hub Mobile]()

[Performance Analytics for Sourcing and Procurement Operations]()

[Progress Tracker for purchase requisitions and purchase orders]()

[Sourcing and Purchasing Automation]()

[Procurement Case Management]()

[Source-to-Pay Workspace]()

[Exploring the procurement case management implementation]()

[Spend and Savings Management]()

[Sourcing Pipeline Management]()

[AI Search for Sourcing and Procurement Operations]()

[Universal Request in Sourcing and Procurement Operations]()