Procure to Pay
- APPROVAL WORKFLOW
CHALLENGES
- Lack of Controls Lack
- of Audit Trail
SOLUTIONS
- Multi-Level Approval
- Approval Thresholds
COST CONTAINMENT
CHALLENGES
- Realized Savings
- Lack of Visibility
SOLUTIONS
- Timely Payments
- Dashboard Metrics
AMORTIZATION & ALLOCATION
CHALLENGES
- Excel Sheets
- Manual Journal Entries
SOLUTIONS
- Automated Schedules
- Auto Journal Entries
Sourcing Overview
- Use the Employee Center to allow employees the ability to request purchases
- Leverage native approval routing to ensure purchases stay within budget and are reviewed
- Have PO’s automatically emailed to vendors to eliminate manual process
- Leverage aging reports and the accounts payable outlay portlet to easily forecast future payments
- Utilize schedules to automate the reporting and posting of prepaid amortization, depreciation, and allocations among segments & entities
- ROLE: Sourcing Employee / Controller / AP
Purchase Request Process
- Use the Employee login to allow employees the ability to request purchases
- Leverage native approval routing to ensure purchases stay within budget and are reviewed
- Leverage reminders to proactively alert users to next steps
2 or 3 – Way Match
- Perform 2 or 3 Way match to identify cases, where a vendor bill has a quantity or cost discrepancy, between the bill, purchase order and/or item receipt
- Set tolerance limits by item, vendor or subsidiary
- Send bills with discrepancy through approval
CREATE VENDOR PAYMENTS PROCESS
- Leverage aging reports and the accounts payable outlay portlet to easily forecast future payments
- Create vendor payments in bulk with bulk manager approval or as one-offs from the vendor bill
- User-defined vendor bill variances allow for better management of payables related to PO’s and receipts
PROCURE TO PAY HIGH LEVEL
- When the Plan phase determines inventory replenishment is required, Procurement will engage the Vendor to purchase inventory.
- The Vendor Performance Scorecard should be used to monitor performance and service of each vendor.
- An approval workflow can use business rules to determine approval routing.
- Warehouse managers will provide adequate space to manage items and inventory.
Role : Supply Chain Manager, Warehouse Operations, Accounting /Controller
STRATEGIC PROCUREMENT
- If multiple vendors offer competing products, and RFQ should be submitted to each Vendor.
- Blanket Purchase Orders or Purchase Contracts can be created if required.
- An approval workflow can use business rules to determine approval routing.
OPERATIONAL PURCHASING
- When the Plan phase determines inventory replenishment is required, Procurement will engage the Vendor to purchase inventory.
- An approval workflow can use business rules to determine approval routing.
- When the Plan phase determines inventory replenishment i required, Procurement will engage the Vendor to purchase inventory.
- An approval workflow can use business rules to determine approval routing.
MANAGE ITEM RECEIPTS
- Role-based dashboard alerts should be used to quickly locate pending receipts.
- If the PO was a Drop Ship order, then the Vendor will send notification of shipment to the customer and purchasing agent can mark the PO as
- shipped.
- If inspections reveals damaged items, then the items are quarantined.
- If Landed Cost is tracked, then the appropriate Landed Cost value included on the Vendor Invoice or shipping documents are recorded.
CREATING VENDOR BILLS
- Utilize the Purchase Orders to Bill dashboard alert to identify purchases pending billing.
- There are three methods to create the Vendor Bill. Bills can be created in bulk using Bill PO’s. The Bill can also be created from the PO Record or the Item Receipt.
- Once a Vendor Bill is entered, a 3-way match is performed. The three
- transactions being compared are: PO, Item Receipt, and Vendor Bill.
- If Landed Cost is tracked, this will be added to the bill.
Role: Accounting & Finance
3-WAY MATCH
- Once a Vendor Bill has been entered, a 3-way match is performed.
- 3-Way Match is used to compare PO, Receipt, and Bill and identify and variances.
- If the variance is outside the Vendor Tolerance levels, then the Vendor Bill is set to Pending Approval.
PAYING VENDOR INVOICES
- Once a Vendor Bill has been approved, the Bill can be paid.
- Utilize Dashboard Alerts to notify the A/P Clerk of Vendor Bills that are due.
- If there are Vendor Credits, they must be applied before the payment is processed.
ONLINE PRESENCE
- Enter/View SO
- Enter/View Quotes
- Request Return
- See Items Ordered
- Make a Payment
- Print Statement Print Price List
- View Transaction History
- View Purchase Orders
- Create Purchase Request
- View Transaction History
- Update Information
- Create/Approve Purchase Request
- Enter PO Requisition
- Track Time
- Enter/Approve Expense
- Reports
STRATEGIC PROCUREMENT
- If multiple vendors offer competing products, and RFQ should be submitted to each Vendor.
- Blanket Purchase Orders or Purchase Contracts can be created if required.
- An approval workflow can use business rules to determine approval routing.
OPERATIONAL PURCHASING
- When the Plan phase determines inventory replenishment is required,
- Procurement will engage the Vendor to purchase inventory.
- An approval workflow can use business rules to determine approval routing.
INBOUND SHIPMENTS
- Create Inbound Shipment (IS) records
- Link Purchase Order items to the Inbound Shipment
- Change Quantity, Rate and Receiving Location on the Inbound Shipment.
- Customize the Inbound Shipment record, header andsub list by adding fields and custom forms
- Receive entire IS at once or just receive individual items.
- Receive a single IS line inmultiple stages.
- Ability to see what quantity of Purchase Order line is associated to Inbound Shipments.
CREATING VENDOR BILLS
- Utilize the Purchase Orders to Bill dashboard alert to identify purchases pending billing.
- There are three methods to create the Vendor Bill. Bills can be created in bulk using Bill PO’s. The Bill can also be created from the PO Record or the Item Receipt.
- Once a Vendor Bill is entered, a 3-way match is performed. The three transactions being compared are: PO,Item Receipt and Vendor Bill.
- If Landed Cost is tracked, this will be added to the bill.
PAYING VENDOR INVOICES
- Once a Vendor Bill has been approved, the Bill can be paid.
- Utilize Dashboard Alerts to notify theA/P Clerk of Vendor Bills that are due.
- If there are Vendor Credits, they must be applied before the payment is processed.
Return to Debit
VENDOR PERFORMANCE
CHALLENGES
- No Visibility into Vendor Performance
SOLUTIONS
- Use Vendor Scoring
- Reports
RETURNS
CHALLENGES
- Manual Process Increase
- Rate of Errors
SOLUTIONS
- Single System Links
- Returns for Efficient and
- error-proof transactions
RETURN TO DEBIT OVERVIEW
- When items need to be returned to the Vendor, the Company must contact the Vendor to request a Return Authorization.
- Dashboard alerts will notify the Warehouse Manager of pending vendor returns.
- Easily create the Return from the Vendor Bill to ensure that the transaction link history is preserved as well as the correct refund amount..
MANAGE VENDOR RETURN
- Once the Vendor agrees and issues a Return Authorization, a Vendor Return can be created in NetSuite.
- Dashboard alerts will notify the Warehouse Manager of pending vendor returns.
- Vendor Returns including inventory items will need to be fulfilled to the Vendor.
- Vendor Returns that qualify for a credit will need to have a Vendor Credit created in NetSuite.
Dashboard, Reminders, KPIs, Reports
KPI’s
- Payables
- Average Days to Pay
- REMINDERS
- Vendor Returns to Ship
- Vendor Credits to Apply
- Vendor Return Authorizations to Return
- KPI SCORECARDS
- Vendor Performance
- Warehouse Operations
- RETURNS MANAGEMENT
- Return Authorization Register
- Open Return Authorizations
- Return Authorizations Pending Receipt
PROCURE TO PAY
APPROVAL WORKFLOW
CHALLENGES
- Lack of Controls
- Lack of Audit Trail
SOLUTIONS
- Multi-Level Approval
- Approval Thresholds
COST MANAGEMENT
CHALLENGES
- Realized Savings
- Lack of Visibility
SOLUTIONS
- Timely Payments
- Dashboard Metrics
AMORTIZATION & ALLOCATION
CHALLENGES
- Excel Sheets
- Manual Journal Entries
SOLUTIONS
- Automated Schedules
- Auto Journal Entries
PURCHASE APPROVAL PROCESS
- Use the Employee Center to allow employees the ability to request purchases
- Leverage native approval routing to ensure purchases stay within budget and are reviewed
- Have PO’s automatically emailed to vendors to eliminate manual process
- Leverage reminders to proactively alert users to next steps
RECEIVING PROCESS
- Track PO statuses pending receipt to ensure timely receiving from your vendors
- System communications with Vendors is available to increase efficiencies
CREATE VENDOR BILL PROCESS
- Leverage multiple sources to generate a vendor bill
- Automate vendor bill approval routing for better cost management
- Utilize schedules to automate the reporting and posting of prepaid amortization, depreciation, and allocations among segments & entities
CREATE VENDOR PAYMENTS PROCESS
- Leverage aging reports and the accounts payable outlay portlet to easily forecast future payments
- Create vendor payments in bulk with bulk manager approval or as one-offs from the vendor bill
- User-defined vendor bill variances allow for better management of payables related to PO’s and receipts
Business Challenges: Procurement
INVENTORY VISIBILITY
CHALLENGES
- Stock outs and overstock
SOLUTIONS
- Item 360 view and reminder dashboards
REPLENISHMENT
CHALLENGES
- Unable to efficiently replenish locations in the supply chain
SOLUTIONS
- Dashboard reminders, Transfer Orders, Item Transfers by location
AP MATCH
CHALLENGES
- Multiple systems makes matching PO’s, receipts and invoices challenging
SOLUTIONS
- Single system with visibility to all three records with tolerances and exception highlighting
PROCUREMENT OVERVIEW
Item 360 dashboard provides
demand information, supply
information, and historical sales
Purchase Order can be emailed
directly to vendors
Approval Process pre-configured
Employees can enter purchase
requests that will become purchase
orders (optional)
Processes for landed cost capture
when accounting period open or
closed