The accounts payable process starts with a purchase or order from a vendor and ends with payment being made to that vendor. NetSuite has Accounts Payable management features built into the system that allow us to manage vendor list, track bills and payables, and make payment. It even has a built-in approval flow for responsibility center owners to approve expenses.
Vendors supply goods or services. Vendor records are created in the NetSuite prior to processing bills or other payable transactions.
Purchases can be entered into NetSuite through creating a Purchase request, which, once approved, becomes a Purchase Order. Once we receive the items from the vendor and the vendor and sends a bill, the Purchase Order becomes a Bill. Purchases can be entered into NetSuite directly as a Bill once the invoice is received or at point-of-sale. The purchase and related payment can be entered together into NetSuite. Once approved recorded as Accounts Payablepending payment.
Approval
Step 1 : Purchase request need to be approved and bill also need to be approved before the payment.
Step 2 : Once approved by the first step, the Accountantneeds to verify the Purchase Request, Bill.
Step 3 :Once vendor bills entered pay them when they are due. By recording the Bill Payment in NetSuite, the payment posts to the general ledger as an expense and the amount of the payment is deducted from your accounts payable total.
There are several Payment Methodoptions in NetSuite including Cash, Check, Bank Transfer, Electronic Transfer, and Credit Card.
Vendor Returns and Credits
a transaction to show credit from a vendor to apply towards payables account. A Vendor Credit transaction may occur when items are returned to a vendor or when a discount is negotiated with a vendor. It is money that the vendor gives back, either as a complete refund or funds to be used on a future purchase, i.e. Credit Memo. We can enter a vendor credit for all or part of the amount of the bill and enter a vendor credit as a way to record a deposit paid on a purchase order.
In the case where items are returned to the vendor, once the vendor return has been approved and shipped, use the Credit Vendor Returns option to create a vendor credit from the return, for the amount of the returned items. This enables to track and apply credit owed to you by a vendor.