NetSuite Procure To Pay Process.pdf

NetSuite Procure to Pay streamlines your purchasing and payment processes for improved efficiency and cost reduction. Get out more information about this novel solution right away.

1. NetSuite Guide
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Procure to Pay gives you complete control and
transparency over a transaction's lifespan.
Purchasing, production, accounting, and other
divisions within a business are all impacted byJun,13,2022· 6
min read
1

NetSuiteProcureToPay
Process

2. the process. Manually completing activities in
the P2P cycle might result in di몭culties such as
postponed or redundant payments, payments
done without corporate permission, paperwork
mistakes, and other bottlenecks. However, the
manual phases in the P2P process may be
streamlined and automated with NetSuite. 
Continue reading this blog to 몭nd out how to set
up the payment process with our NetSuite
custom development services.
 
What is NetSuite
Procurement?
By routing purchase orders to authorized
resellers and pre-negotiated contracts, NetSuite
Procurement lets 몭rms purchase products and
services at the right value and on schedule.
Managing suppliers and the procurement
process from a central location saves time and
money. 
Not just that, you can also improve visibility and
communication across the procure-to-pay
process by creating real-time views of corporate
spending and vendor performance. All
procurement-related data, from operations and
documentation through supplier assessment
and departmental spending, is consolidated in
the procurement dashboard.
 
 

3.  
What is Procure-to-Pay
(P2P)?
The term "procure-to-pay" in the NetSuite
development environment refers to the
procedures that occur when a 몭rm acquires,
receives, and payments for products and
services. The procure-to-pay process includes
actions such as recognizing the initial
requirement for products or services through
the 몭nal processes of clearing invoices and
paying providers.
Purchase-to-pay, or P2P, is another term for
procure-to-pay. Although dedicated procure-
to-pay software is available, the word is more
commonly used to refer to the process instead
of a unique technical solution. The bene몭ts of
automating all or portions of the procure-to-
pay process range from improved compliance
and control to a lower margin for human
mistakes.

4.  
 
What is Procure To Pay
Process in NetSuite?
The procure-to-pay process steps, often also
known as the procure-to-pay cycle include step
by step process which can be de몭ned as follows:
1. Creation of Vendor
Before starting with the Procure to Pay process,
it is important to create a Vendor and list Items
in NetSuite. 
To create the vendor, all you need to do is go to
Lists, next go to Relationship, then Vendor and
create New Vendor. 
While creating the Vendor Pro몭le, you need to
몭ll in all the mandatory information including
the Company Name.

5. 2. Creation of Item
Based on the inventory and non-inventory, you
need to create an item. 
To do that, go to Lists and select Accounting.
Next, select Items> Non-inventory and 몭nally
on Purchase.
While listing the item, you need to 몭ll the
necessary 몭elds, including Item Details, Vendor,
and Tax Schedule. 
Once you assign a Vendor to a given item, it
automatically appears for the requisite item in
the future.
3. Creation of Requisition
Once you have listed the Vendor and Item, it is
time to create a requisition with them. A

6. time to create a requisition with them. A
requisition is a proposal for products or services
issued by an individual to the department or
division accountable for NetSuite procurement
in a 몭rm. 
For creating a requisition, 몭rst, go to
Transactions and then select Purchases. 
Next, click on Enter Requisition and select a
New One. 
You must provide the requestor's name, date,
item name as well as the department while
creating one. 
The Requisition order will be pending when you
submit the Requisition. 
Generate an order requisition for the speci몭c
requisition and submit the form. 
The purchase order will be processed once the
order requisition is submitted.

7. Click OK & the status will be changed to Started.
4. Issuance Of Purchase Orders
When a customer places an order, it will be
created automatically as per requisition. 
Go to Transactions> Purchase> Enter Purchase
Order> List.
Thereafter, click Edit to automatically 몭ll the
몭eld with information such as:
Kind, 
Price, and 
Quantity of the items or services being
acquired. 
This will generate a pending receipt.
5. Receipt For Purchase Orders

8. Receiving items from the supplier, inspecting
them against the purchase order's data,
detecting any damage that may have happened
during shipment, producing a receipt, and
putting details into the applicable systems are
all part of this process.
6. Invoice Creation
The supplier will send an invoice to the
customer detailing the amount due and the
deadline for payment. Purchase orders will need
to be reconciled, and invoices will need to be
몭led into the appropriate systems.
7. Bill Payments
Paying supplier bills on time and documenting
transactions are both part of the accounts

9. payable process. The purchasing business will
need to ensure that vendor payment data are up
to date as part of this plan, as well as take
precautions to prevent accounts payable theft.
Therefore, payment will be processed if
submitted successfully to a particular vendor.
8. General Ledger Management
A General Ledger (GL) is an account-based
record of all of a 몭rm's transaction history. GL
manages to account for and delivers largely
automated 몭nance operations. 
In NetSuite, navigate to Bill Payment > Action >
GL Impact to receive the status in GL IMPACT.
 
Challenges Of The
Procure-to-Pay Process
The procure-to-pay cycle, as previously said,
consists of various phases. Typically, this will
entail activities by a number of employees
across various departments within the 몭rm,
ranging from procurement to 몭nance, who will

10. be using a range of platforms. People
participating in procure-to-pay may have
con몭icting or even opposing agendas and
objectives after NetSuite end-user training. 
These characteristics can result in a variety of
issues, ranging from a lack of reliable data
throughout the entire procure-to-pay cycle to
the likelihood of mistakes due to manual
operations. A few of them can be:
Slow invoice processing time
High costs per invoice
Lack of spend visibility
Di몭culty in data retrieval
Reduction inaccuracy
Lack of visibility, and many more.

11. The companies may attempt to solve these
issues by streamlining their procure-to-pay
processes to maximize speed, transparency, and
intelligence.
 
How Can NetSuite
Procure-to-Pay
Software Help You?
End-to-end procure-to-pay solutions are
o몭ered by certain providers, with the goal of
automating the entire P2P process. From
supplier management platforms to solutions
that automate the production of purchase
requisition and the issuing of sales orders,
technology can help streamline various aspects
of the procure-to-pay cycle.
Invoice automation systems may also be used to
simplify invoice data gathering, decrease the
risk of mistakes, and automate accounts payable
operations. Vendors, too, may limit the risk of

12. mistakes or delays in the bills they deliver to
their customers by using electronic invoicing
systems. It guarantees that the statements are
sent to the correct location and in the correct
format. Solutions that transform purchase
requisition into invoices automatically, and also
a system-to-system connection for huge
numbers of invoices, are among them.
 
Bene몭ts of NetSuite
Procure-To-Pay Cycle
You can hire a NetSuite developer to serve you
the advantages of adopting NetSuite for procure
to pay process:
A centralized method for keeping track of all
spending.
Helps businesses manage their cash 몭ow
using an easy-to-use interface
Purchase orders, invoices, and payments may
all be tracked using it.

13. Can assist businesses in saving money by
obtaining discounts from suppliers.
It aids in the organization and e몭ciency of
enterprises.
 
Wrapping Up!
The companies will be more positioned to
capitalize on early payment options like supply
chain 몭nance or 몭exible discounting if the
procure-to-pay process is more e몭cient.
Companies may also enhance their connections
with their vendors and minimize the likelihood
of supply chain interruption by giving early
payment to them. In fact, they can also use their
own funds to achieve a risk-free return through
dynamic discounting with NetSuite's advanced
procurement services. 
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