1. Monitor Inventory Levels
- Objective: Track current inventory levels and ensure materials are available for production or sale.
Steps:
- Regularly review inventory reports and real-time data.
- Set reorder points and minimum stock thresholds for key items.
- Leverage NetSuite's inventory management features to automate alerts when stock levels drop below defined thresholds.
2. Create Purchase Orders (POs) to Maintain Desired Material Inventory Levels
- Objective: Generate POs to replenish inventory as needed.
Steps:
- Use automated reorder functionality to trigger POs when stock falls below threshold.
- Create POs manually or through automated processes based on stock levels and vendor lead times.
- Use NetSuite’s supplier and inventory management modules to create and send POs directly to vendors.
- Track PO status and expected delivery dates within the system.
3. Receive Materials into the System
- Objective: Ensure received materials are properly logged and matched to the corresponding PO.
Steps:
- Upon receiving materials, match the physical receipt to the PO in NetSuite.
- Use barcode scanning or manual entry to update inventory levels in the system.
- Ensure the system reflects accurate quantities and conditions for received goods (e.g., damaged goods or discrepancies).
4. Process Invoices Against Purchase Orders
- Objective: Ensure that invoices match the agreed-upon terms and quantities in the PO.
Steps:
- Match vendor invoices to the related POs in NetSuite.
- Check for discrepancies (e.g., pricing, quantity) between the PO and the invoice.
- Approve invoices for payment in the system, ensuring that the accounts payable module reflects accurate amounts.
- Track payment statuses and maintain proper documentation for financial auditing.
5. Process Non-PO Accounts Payable (AP) Transactions
- Objective: Manage and process invoices for expenses or purchases that don't involve a PO.
Steps:
- Record non-PO AP transactions in NetSuite, such as utility bills or miscellaneous expenses.
- Review and approve non-PO invoices according to business rules.
- Ensure proper accounting and financial reporting for non-PO transactions.
- Route for payment as per internal processes, ensuring accurate AP reporting.
Desirable Features in Oracle NetSuite:
- Inventory Management: Real-time tracking, automated reordering, inventory reporting.
- Procurement: Automated purchase order generation, vendor management, and order tracking.
- Receiving and Receiving Transaction Matching: Efficient receipt and tracking of goods to inventory.
- Accounts Payable: PO-based and non-PO-based invoice processing with approval workflows.
- Reporting & Analytics: Financial, inventory, and procurement reporting for informed decision-making.
- Automation: Auto-generation of POs and alerts based on inventory levels and other criteria.
This outline defines the end-to-end process of managing inventory and procurement within an enterprise resource planning (ERP) system like Oracle NetSuite.
