Procure to Pay (P2P) process in NetSuite ERP

Steps to set up Procure to Pay in NetSuite

What is Procure to Pay?

Procure-to-pay, or P2P, is a business process wherein organizations ask for, request, receive, and then pay for goods and services. The process often involves many manual steps to complete a single order, which is why businesses automate the process using an ERP platform like Oracle or NetSuite.

Why Procure to Pay is important

Procure to Pay provides control and visibility over the entire lifecycle of a transaction. The process also touches many different departments within an organization — purchasing, production, accounting, etc.

When you manually perform tasks within the P2P cycle it can lead to issues like delayed or duplicate payments, payments made without internal approval, documentation errors, and other inefficiencies.

Steps to set up Procure to Pay in NetSuite

1. Create a Vendor

2. Create an item based on inventory and non-inventory

3. Create an order with vendor/Customer and item

4. Purchase Order

5. Create a Receipt for the purchase order

6. Create an Invoice for a particular receipt

7. Make payment for a particular Invoice

8. General Ledger/GL IMPACT

It is a critical component of the purchasing process, as it allows companies to manage their inventory and track their expenses.P2P is a key component of the purchasing process, as it allows companies to manage their inventory and track their expenses. It is a critical component of the purchasing process, as it allows companies to manage their inventory and track their expenses.