The quick answer
Save a purchase order, receive the quantity actually delivered, and create the related vendor bill. Once the bill is available for payment, use Make Payment, apply its remaining balance, and save. Return to the bill to confirm Paid In Full.
The screenshots show sample data. Person and operating-company names are fictional. Use your own records and values when following the steps.
Before you start
You’ll need permission to create Purchase Orders, Item Receipts, Vendor Bills, and Bill Payments. Have an approved vendor, a purchasable item, the required subsidiary and location values, and any invoice reference or approval information available. This walkthrough uses separate receiving and billing, as configured with Advanced Receiving. Follow any required PO or bill approval before continuing.
01. Enter the Purchase Order details
On the Purchase Order form, select the vendor and review the required header fields, including subsidiary and currency. Add the item and enter the ordered quantity, rate, location, and optional memo. The replay shows a Standard Purchase Order with a displayed total of 100.00; your amount will be calculated from the item, quantity, and pricing you enter. Save the order and check its number and status. If it is Pending Approval, complete your approval process before receiving.
02. Check the saved purchase order
Confirm that the saved order has the intended vendor, item, quantity, and total. This example is Pending Receipt and offers Receive.
03. Confirm the Item Receipt
Use the Purchase Order’s receiving action to create an Item Receipt, then review the item, quantity, and receiving location. Save the receipt only for the quantity actually received. The saved receipt shown in the replay contains one item with quantity 1 and confirms the receipt record, but it doesn’t create a vendor bill or payment.
04. Create the Vendor Bill from the order
From the Purchase Order, use the billing action to open a Vendor Bill. Review the copied vendor, item lines, amount, currency, posting period, payment hold, and approval fields, and enter the vendor invoice reference when required. The replay shows an item total of 100.00 and an Approval Status of Pending Approval on the bill form; account workflows may require approval before payment. Save the bill and inspect its balance and approval status. This example saves as Approved; your account may require a separate approval or removal of a payment hold.
05. Apply the bill payment
Open the saved bill and choose Make Payment. Review the bank account, date, and amount. In Apply, confirm that the intended bill is selected for its full remaining balance, then save.
06. Review the saved bill payment result
Return to the vendor bill after saving the payment. This example shows Paid In Full for 100.00 and Approval Status Approved. Check the applied payment and remaining balance; the NetSuite status does not establish bank settlement.
Check the result
- The Purchase Order contains the intended vendor, item, quantity, location, currency, and calculated total.
- The Item Receipt shows the quantity actually received and identifies the originating Purchase Order.
- The saved Vendor Bill shows the intended approval status and, after full payment application, displays Paid In Full with no remaining balance.
Common questions
How do I create a purchase order and receive its items?
Create and save a Purchase Order with the vendor, item, quantity, price, subsidiary, and location as required. Use the order’s Receive action to create an Item Receipt, adjust quantities to match the goods actually received, and save it. Saving the purchase order does not receive inventory or create a payable.
How do I create a vendor bill from a purchase order?
Open the saved purchase order and select Bill. Review the vendor, quantities, amounts, currency, accounting fields, and vendor invoice reference, then save the Vendor Bill. Depending on account configuration, the bill may require approval, matching, removal of a payment hold, or posting in an open accounting period before it can be paid.
How do I pay a vendor bill in NetSuite?
Open an eligible, saved vendor bill and select Make Payment. Confirm the payment account, date, currency, amount, and Apply details, then save the Bill Payment. Available actions and required fields vary by role, subsidiary, payment method, approval workflow, and account configuration.
Why does a bill remain open after I save the payment?
The payment may be partial, unapplied, awaiting approval, on hold, in a different currency or subsidiary context, or blocked by accounting controls. Check the bill’s remaining balance and the payment’s Apply section; the bill shows Paid In Full only when the full balance is successfully applied. This status confirms NetSuite’s recorded application, not external bank settlement.