Accounts Payable for Distributors

00:05[Music] welcome back to the netsuite series overview for the pecu to pay process for wholesale distribution my name is ben gibson and i'm a solution consultant on the wholesale distribution team here at netsuite with leading practices in netsuite's unified cloud platform we'll be proactively notified when vendor bills need to be entered and paid our procure to pay process will also be streamlined with netsuite's end-to-end traceability and transaction matching eliminating manual entry and improving accuracy with the time savings of automation we can take advantage of vendor discounts as well as track and apply landed costs to our products increasing financial visibility into the supply chain and allowing you to maximize product profitability down the line and lastly transactions will post to the general ledger in real time providing an accurate picture of payables at any point during the billing cycle logging into netsuite as an accounting manager my dashboard looks different than from the inventory managers

01:15and warehouse operations role as i have different tasks and metrics that are important to me my reminders are tailored for my job so as soon as i start my day netsuite proactively notifies me how many in which vendor bills we should be expecting with purchase orders to bill this saves me time from having to sift through po registers or a stack of purchase orders on my desk at this point i have a few options i can create bills in bulk with just a click i can filter by vendor can also scan a transaction barcode to pull up a specific po or simply select one from the list i'd like to highlight that up to this point in the procure to pay process there's been no manual data entry or any re-keying of information that is because of netsuite's unified platform which eliminates the need for additional data entry because information is automatically pulled in from the item

02:15and vendor record to the po then to the item receipt as i save this record a vendor bill will be created and my ap aging will be updated in real time to reflect the new bill additionally my dashboard will be updated by drilling into my current ap aging report i can see my open balances by vendor and from this report i can drill into the transactional detail now because all reports in netsuite are drillable i can continue to drill down to the source transaction from this report there are a number of ways to pay a vendor bill in netsuite and one way is to pay directly from the vendor bill itself whether the payment method is by check electronic fund transfer or ach netsuite has it covered and because of all the time savings of automation netsuite provides i can take advantage of vendor discounts that i negotiated for saving big by reducing our spending and as a result creating a more cash solvent supply chain

03:19now that the bill has been paid the general ledger will be updated instantaneously and we will see the vendor bill fall off of the report in real time another bill i paid recently was for freight charges from the trucking company who shipped our vendor's order and netsuite allows me to track landed costs for my items and allocate these costs to my item receipts with the option to do so on the transaction or line level based on weight quantity and value this enables me to better track the overall item cost and help my business establish proper sales prices and determine with more accuracy what is our actual margin for a specific item once applied the expense is capitalized with the inventory items and this is visible through the gl impact of the receipt