Procure to Pay

P2P (Procure to Pay) is the blueprint of how a company conduct the entire supply chain process.  This is a business process that describes the mechanism and the obligation of the company in order to complete the transaction.  This touches the Account Payable portion of the business which impacts expense.  Aside from the sales process, this is another area where you can expect the company generate a lot of its data in NetSuite.  The design of P2P process in NetSuite look like this...

Purchase Order

For a lot of companies, it starts out with a Purchase Order (to get to a new PO you can global search 'Enter Purchase Order').  A Purchase Order record is a non-posing transaction in NetSuite and there are a few key data points that you will need.  The subsidiary is the first key entry as you can have more than one company doing business through NetSuite.  The vendor you are getting the supply from will be required.  Of course, there is the items that you are purchasing, within the items you have the price you are paying and your location.  Once you hit Save, NetSuite will create an unique internal ID and stored it in the database.  Great, now that we have locked in a contract to purchase from a vendor.

In addition to single PO, there might be a valid business case where you want to add additional layer to track more activities and consolidate procurement in general.  Just one step before purchases, NetSuite can provide a non-posting Requisition record where it tracks employee's intention to purchase.  The main things in a Requisition is for employee to focus on item and quantity they need to be delivered at a certain time, not much else after that.  From this request the transaction can generate the purchase order.

Item Receipt

Once a Purchase Order is generated the status is Pending Receipt, here we are ready to get items in stock (in certain cases company are required to put up deposits before the delivery of supplies, NetSuite does allow bill payments before receiving for such scenario).  On your Purchase Order record page, you will see a Receive button, click on it to bring up the Item Receipt page.  The information should have been carry over from the Purchase Order record.  When you hit Save, NetSuite creates an unique internal ID and store the record in your database.  Item Receipt is a posting transaction that has an Accounting impact, it cannot be standalone.

Bill

Once your items are in stock, it's time pay so you can make your supplier happy.  Your Purchase Order status is now Pending Bill.  Open your PO record and you will see the Bill button, once click on it you will be carry into the Bill record page.  Most of the field should be populated from the PO record and once you hit Save, an unique internal ID is assign then stored in the database.  The vendor bill is a posting transaction that has an Accounting impact.

Bill Payment

At this point your Purchase Order status is Fully Billed and you may start processing the payment.  Open the Bill record and you should see the Make Payment button, it would take you to the Bill Payment page.  You choose the your account that you are paying it from and apply it to the bill in question.  The payment record is a posting transaction that has an Accounting impact.  Up to this point the Purchase Order status is Fully Billed and the Vendor Bill is Paid In Full (you may see all the linked transactions under the Related Records sub tab), this is the evidence that the transaction is complete.

Vendor Return Authorization

There is also a time when the item needs to go back to the vendor for some reason, you can create a return for this.  You can start a vendor return from the Purchase Order record where you will see the Authorize Return button.  The Vendor Return Authorization is a non-posting transaction that carry on to create the Item Fulfillment and Bill Credit (both are posting and has Accounting impact).

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