Streamlining Procurement with NetSuite
With today’s business ecosystem, the focus is on efficient procurement processes that can potentially reduce costs, optimize cash flow, and ensure streamlined supply chain operations. As a professional solution provider for NetSuite Procurement, we empower businesses at Livestrong Technologies to optimize procurement functions.
NetSuite Procurement offers end-to-end functionality to manage your entire cycle, from requisitions and purchase orders through supplier bills and payments. Have configured and refined NetSuite Procurement and in turn is getting faster, more accurate compliant purchasing processes across multi entity operations and reduced administrative workload for your organization. In this blog, we will walk you through the configuration of NetSuite Procurement & how to use it at its best.
What is NetSuite Procurement?
NetSuite Procurement encompasses the entire procurement process within NetSuite ERP. This process includes requisitioning purchases, receiving goods, matching vendor bills, and making payments to vendors. It also helps in really centralizing purchasing activities, increasing visibility throughout the procurement lifecycle, and streamlining your supply chain operations.
Key components of NetSuite Procurement include:
- Purchase Requisition: Internal requests to procure items or services.
- Purchase Orders (POs): Formal documents sent to the suppliers to purchase goods and services.
- Vendor Bill: The Bill is ready to be processed, paid for and generated by a supplier.
- Payments: Paying vendors on time with outstanding invoices.
NetSuite Procurement can automate many of these processes, minimizing manual intervention and increasing accuracy. However, its potential can only be maximized with proper setup and integration of the system. That’s where Livestrong Technologies comes in.
Does NetSuite Support Procurement?
Yes, NetSuite provides support for procurement activities. It allows managing requisitions, creating POs, tracking vendor bills, and making payments, which are the most critical features of the system. But Livestrong Technologies suggests automating your procurement process and addressing some common challenges that arise with manual data entry, errors, and slow invoices by integrating your automation solutions with NetSuite.
Procurement automation software complements NetSuite’s features by:
- Enhancing purchase requisition and order management.
- Automate invoice matching and approval processes
- Improving supplier visibility and communications.
- Efficiently handling multi-currency and global payments.
These NetSuite Procurement integrations enable your system to work in a more efficient manner, thus providing you with more time and saving costs.
How to Configure Procurement in NetSuite
Step 1: Enter a New Vendor:
a. Go to Lists > Relationships > Vendor > New.
b. Enter vendor information, including name, contact information, payment terms, and other details.
Step 2: Create Items to Purchase
a. Go to Lists > Accounting > Items > New.
b. Select an inventory or non-inventory Item.
c. Define attributes like item name, number, description, vendor, tax schedule, etc.
Step 3: Generate Purchase Requisition:
a. Go to Transactions > Purchases > Enter Requisition > New.
b. Fill in the necessary fields, such as the requestor’s name, department, and the items needed.
Step 4: Generate and Edit Purchase Orders
a. Navigate to Transactions > Purchase > Enter Purchase Order > List.
b. Editable Fields like quantity, price and description of Item.
Step 5: Record Receipt of Goods:
a. Compare the received items with the purchase order to ensure accuracy.
b: Finalize the receipt by updating the status in the system.
Step 6: Enter Vendor Bills:
a. Check the invoice number, PO number, and payment terms.
b. avoids the invoice being different from the corresponding PO. That may cause a payment error
Step 7: Make Payments to Vendors:
a. Go to Transactions > Payables > Pay Bills.
b. Select the correct payables account & payment method.
Common Challenges in NetSuite Procurement
There are many business challenges, such as:
- Manual Processes That Waste Time: Paperwork and data entry are prone to errors and delays.
- No Visibility: When requisitions, POs, and payments are processed through distinct workflows, the procurement functions become cumbersome as the data is kept in silos rather than providing real-time insights.
- Focus on Fraud and Errors: Manual processes are more prone to fraud and payment errors.
- Poor Spending Control: Tracking and managing spending can be challenging if not automated, resulting in overspending and missed savings options.
Procurement automation solutions integrated with NetSuite harmonize businesses together as they address these challenges with a process-oriented approach.
The Role of Automation in NetSuite Procurement
NetSuite Procurement Optimization with Automation Businesses can automate purchase requisitions, purchase orders, bill approvals, and payments to:
- Decrease manual work and errors.
- Speed and efficiency improvements.
- Improve the visibility in the procurement process.
- Improve financial controls and reduce the risk of fraud.
Livestrong Technologies provides automation solutions that integrate directly with NetSuite to help your business streamline your procurement processes and onboard quickly!
Conclusion: Start Automating Your NetSuite Procurement Process
Integrating automation solutions and leveraging NetSuite Procurement allows procurement in your business to become more efficient than ever. NetSuite solution experts Livestrong Technologies can streamline the process of NetSuite Procurement, Crocheted Data, and Material Replenishment in the Software and Applications. Ready to streamline your NetSuite Procurement process? Contact Livestrong Technologies today to learn more about our solutions and how we can set you up with a demo.
Frequently Asked Questions (FAQs)
NetSuite Procurement is an ERP solution that manages the entire procurement cycle, purchase orders, vendor bills, and payments. This means that it brings purchasing activities to one platform, increases visibility, and helps streamline the supply chain’s operations.
NetSuite also helps businesses automate the procurement process by streamlining purchase order approvals, automatically matching invoices, and clearing supplier payments, all while minimizing manual effort.
Configuration steps will include adding vendors, creating items to purchase, generating purchase orders, recording the goods receipts, entering supplier bills, making payments, and reconciling them to the general ledger.
Top manual processes are accounting practices — with problems such as manual data input mistakes, little process transparency, the potential for fraud, and the inability to monitor spending. Automation addresses these issues by enhancing precision and productivity.
Automation streamlines processes by minimizing manual tasks, accelerating approvals, increasing transparency, and strengthening financial controls for more efficient procurement management and cost savings.