In this follow up video to the Procure to Pay lesson, we walk through an entire transaction along the Procure to Pay Process Flow in NetSuite.
Welcome back. In the last video, we took a look at the procure to pay process flow. So in this video, I'm going to walk you through an example of that flow in Netsuite. So let's take a look at this.
All right. Here we are on our dashboard. So first off list, generate a purchase order. So we go to transactions, go down to purchases, and then over to enter purchase orders. And if you click this without going to the right there with the list and search, if you just click on Enter purchase order, it will actually take you to a blank purchase order to fill out.
So here we are on our purchase order, so let's go down. So Vendor. We're just going to pick ACOM Business solutions. They sell computers and we're going to put in the location. This is the location of the, this is the location on our end that we're going to be receiving those ten. In this case, we're going to be buying monitors. So the ten monitors are going to show up at this location in the United States West subsidiary. So we've got that set up and it auto fills in some information based on the vendor that we're doing, such as the subsidiary, the U.S. dollar, the exchange rate, things like that.
So now we can head down here and we have an auto set. And if you go down to the sub list here, you see there's expense and items. So there's actually two ways that you can list something for a purchase order. You can either for expense, you're specifying a specific amount like we're doing a purchase order for $500 for, let's say, marketing supplies. So you can budget it that way or you can kind of do a purchase order request that way. Or you can list it by items. By items means like this item. This item we're purchasing these exact items. And that's often used for especially items. That's inventory that's going to be resold. You need to record exact numbers for your warehouse that will then be resold. So that's when you would put it under items.
Now, in this case, we are buying monitors that we're not necessarily going to resell. But just to make this clear how this works, I'm going to show you which items. If you click on that, I can pull up the exact monitor here. So I'm going to get this ultra led monitor and you see it pops up there. It also shows the cost of it, the quantity that I'm buying. So I want to buy ten and you'll see it auto generates that amount. And I'm going to hit. So it auto added that and I'm just going to hit save for this purchase order.
All right. So we see that there's a confirmation that that transaction was successfully saved. And then we now see we have the ability to generate the receipt based on this purchase order. So we've now asked for these items, the ten laptops or the monitors, and we can now say, good, We've actually received those monitors and moved to the next stage. So let's click here, see? Good. So we're now generating a Receipt. It fills in all this information based on the purchase order. So we don't actually have to change anything here. We're going to go straight down to save. Click on that. So we've now basically saved in the system that we have received those ten monitors and now we have the option to bill.
So now we've received the invoice from in this case it was a comm solutions. And we're going to say that we've received their invoice and we're going to generate a bill that matches that invoice. So we click Bill and again, all of this is already set up. One thing I'm going to point out, similar to the order to cash cycle, we do have this approval status button. So if you have a system in your company where there's some kind of approval line, maybe a supervisor needs to a perk, approve a purchase order or the billing of a purchase order. So in this case, we're not going to have pending approval. We're just going to say that it was approved. So we're going to skip that step. And if I scroll down again, all this information still there, we just click save on that bill.
So now we have the bill which is currently open and we're going to make a payment on that. So we click make payment. So now we have the bill payment and you'll see that all the information is still there. In this case, we're paying through a check. So you'll see the check number there. And if we hit save, we've now recorded and had confirmation that we paid the bill to ACOM business solutions for these ten monitors.
All right. And that's it for your example on Procure to Pay. I'll see you in the next video.