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Accounts Payable in NetSuite refers to the module and processes used to manage a company’s liabilities—specifically, the money owed to vendors and suppliers for goods and services. NetSuite’s Accounts Payable (AP) functionality is part of its financial management suite, enabling businesses to efficiently manage vendor bills, payments, and reporting. Here's a breakdown:
The AP process in NetSuite includes the following:
Recording vendor bills (invoices).
Managing payment terms and due dates.
Paying vendors using different payment methods (e.g., bank transfer, check, ACH).
Tracking outstanding liabilities and generating reports.
NetSuite provides a comprehensive suite of tools to manage accounts payable:
Vendor Management
Maintain vendor records, including contact details, payment terms, and preferred payment methods.
Assign subsidiaries to vendors (if using NetSuite OneWorld).
Bill Management
Create and track vendor bills through Transactions > Payables > Enter Bills.
Attach purchase orders (POs) to vendor bills for a streamlined procure-to-pay process.
Automate recurring bills for regular expenses like rent or utilities.
Payment Processing
Pay vendors using different payment methods (e.g., electronic payments, checks, wire transfers).
Batch payments to settle multiple bills at once.
Use Vendor Prepayments to manage advance payments.
Aging Reports
Generate Accounts Payable Aging Reports to track outstanding liabilities and identify overdue bills.
Approval Workflows
Implement custom approval workflows to review and approve vendor bills before payment.
Multi-Currency Support
Handle transactions in multiple currencies and track foreign exchange gains or losses (if multi-currency is enabled).
Integrations
Integrate with banking systems for seamless payment processing and reconciliation.
Connect with third-party tools for automated invoice processing.
The AP workflow typically includes these steps:
Vendor Setup:
Create a vendor record under Lists > Relationships > Vendors > New.
Specify payment terms, currency, and tax information.
Enter Vendor Bill:
Navigate to Transactions > Payables > Enter Bills to record a vendor invoice.
Link the bill to a purchase order (if applicable).
Approve Vendor Bill:
If approval workflows are enabled, route the bill for review.
Process Payment:
Pay approved bills under Transactions > Payables > Pay Bills.
Select the payment method and processing date.
Reconcile Payments:
Match payments with bank statements for reconciliation under Bank Reconciliation.
NetSuite offers a variety of pre-built reports to track and analyze accounts payable:
AP Aging Summary/Detail: Shows outstanding bills grouped by due date.
Vendor Balance Summary: Displays amounts owed to each vendor.
Bill Payment History: Tracks historical payments made to vendors.
Cash Flow Forecasting: Helps assess upcoming payment obligations.
Automation: Reduce manual work with automated processes for bill entry, approval, and payments.
Visibility: Get real-time insights into payables with dashboards and reports.
Compliance: Maintain accurate records for audit and tax purposes.
Scalability: Manage AP for multiple subsidiaries and currencies with NetSuite OneWorld.