Procure-to-pay process

We will start by looking at a simple process to purchase items that we intend to sell. The process starts with an employee entering a purchase request. The purchase request specifies the vendor and the items, as well as the quantity of those items to be purchased. Being a purchase request, it requires the approval of a manager in order to be transformed into a valid purchase order. The purchase order is then sent to the vendor, which the vendor fulfills by sending the items to our warehouse. The warehouse manager receives the order and places the items in stock.

It is up to the accountant to enter the bill into NetSuite, however, the bill has the same details as the purchase order, so the accountant will simply transform the purchase order into a bill at the click of a button. The Accounts Payable (AP) Clerk will now recognize which bill is required to be paid in accordance with the terms with that vendor. The AP Clerk will then wait until the bill is due and pay the bill by issuing a check.