What is NetSuite accounts payable automation?

The platform connects invoice processing, purchase order matching, and approval workflows in one system. Payments are recorded securely and linked to your financial data, which creates a complete audit trail and keeps reporting accurate.

Because everything runs within NetSuite, you get real-time visibility into cash flow and vendor transactions. Automation handles the repetitive work, like invoice entry and payment reconciliation, so it gets done faster and with fewer errors.

What are NetSuite’s built-in AP features?

NetSuite's AP capabilities make your accounts payable process more reliable through these core features:

• Vendor records: Stores centralized profiles for every vendor with transaction histories and contact information.
• Purchase orders: Manages purchase orders from creation through approval and receipt.
• Invoice capture: NetSuite Bill Capture uses OCR technology to digitize invoices to automatically extract line items.
• Payments: Supports multiple payment methods, including ACH and wire transfers.
• Payment automation: Schedules payments and approvals with minimal manual intervention.
• AP reports: Customizable AP-specific reports for analyzing trends, reviewing historical data, and supporting audits and compliance.
• Credit memos: Allows businesses to record vendor-issued credits and apply them to open bills or future purchases.

How do external AP tools work with NetSuite?

NetSuite works with third-party AP tools if your team needs more flexibility than what’s built in. For example, Ramp Bill Pay integrates with NetSuite to add features like line-level OCR, automatic bill coding, AP aging reports, and more.

Whether you use NetSuite’s native AP features or bring in an external platform, the goal is the same: to manage accounts payable in one place and get a clearer view of your spending.

How to set up AP automation in NetSuite

To set up AP in NetSuite, you’ll need clean vendor records, clearly defined workflows, and access to the platform’s built-in accounts payable features.

Though steps may vary, the typical setup process includes these steps:

1. Activate AP features. Enable relevant modules in the "Enable Features" section under "Setup" > "Company" > "Enable Features." Navigate to the Accounting tab to confirm "A/P" has been enabled, along with other related settings like Amortization, Purchase Orders, Advanced Receiving, Inventory, and more.
2. Build approval workflows. Open "Customization," select "Workflow," and then "Workflows" to create new or customize existing automated rules for routing invoices based on vendor, amount, or department.
3. Set up payment methods. Define your organization's payment methods in "Payments Setup." Note that NetSuite can't execute payments natively—ACH, checks, and wires require a bank integration or third-party payment tool.
4. Customize vendor profiles. Under "Lists" > "Vendors," ensure all vendor records include accurate contact details, payment terms, and tax IDs.
5. Test the system. Process a small batch of invoices to confirm workflows function correctly. Depending on your setup, invoices may require manual entry or use NetSuite's Bill Capture OCR for data capture.

If you're integrating third-party AP tools like Ramp Bill Pay, follow the steps above while referring to the synchronization instructions provided by the external tool. This typically involves accessing your ERP system, navigating to the connection configuration settings, and setting up your workflows accordingly.

Best practices for managing your AP automation

Once you’re set up, follow these AP best practices to make the most of your automation.

• Invoice management: Regularly monitor flagged invoices to address mismatches quickly. Use rules to prioritize high-value invoices for faster approval.
• Vendor management: Update vendor records regularly to avoid payment delays. Use reporting tools to identify top vendors and build stronger partnerships.
• Payment processing: Set up alerts for upcoming payments to optimize cash flow.
• Real-time insights: Use real-time data to identify bottlenecks and make informed decisions about AP processes. Set up automated reports to track performance metrics over time.

Using Ramp Bill Pay alongside NetSuite

Ramp Bill Pay is AP automation software that handles invoice processing, automates payment workflows, and gives you real-time visibility into spend. It syncs directly with NetSuite to keep records accurate and reduce manual work across systems.

We’ve put together a list of Ramp and NetSuite common questions to help you get started. But here’s what you can expect once your systems are connected.

• Custom field integration: Ramp pulls in NetSuite custom fields for coding and marks required fields based on your ERP's configuration.
• Multi-entity support: Ramp Bill Pay supports multiple entities within NetSuite. Subsidiaries from your accounting system can have a default bank account for payments, a corresponding cash account in NetSuite, and a default AP account for bill tracking.
• Procurement streamlining: Sync purchase orders both ways—import POs from NetSuite into Ramp or create POs in Ramp and send them to NetSuite.
• 3-way matching: 3-way matching in NetSuite can be automated through Ramp Procurement as part of its ERP integration.
• Bill sync and payments: Sync bills in either direction between Ramp and NetSuite, then pay vendors directly through Ramp Bill Pay.

How The Second City sped up AP using Ramp and NetSuite

The Second City, a renowned entertainment company, had outdated AP processes that were holding them back. Frank Byers, Controller at The Second City, shared:

"We had an AP automation tool that was an app built on NetSuite. It was supposed to scan the bill with OCR technology and pre-populate the vendor. But it didn't break out line items or code them..."

Ramp Bill Pay transformed their AP workflows with advanced OCR technology that extracts data, recognizes vendors, and applies accounting rules automatically. Frank Byers explained:

"When we moved to (Ramp) Bill Pay, I was hesitant because we were promised the same type of functionality as our previous technology, which didn't work. But Ramp's OCR works seamlessly—it not only recognizes the vendor but reads each individual line item and uses accounting rules to code them correctly. That made adopting Ramp Bill Pay a no-brainer."

The results:

• 2x faster processing. Freed up valuable team resources.
• $40,000 annual savings. Streamlined systems generated meaningful savings.
• 8-day efficiency gain. Faster expense reporting eliminated delays.

Start automating AP with Ramp and NetSuite

NetSuite’s AP features help teams manage approvals, payments, and invoice tracking in one place. When paired with Ramp, you get additional tools like automated coding, line-item OCR, and advanced reporting—built to reduce manual work and speed up close.

Ready to automate your accounts payable workflows? See how Ramp Bill Pay works with NetSuite.