How does NetSuite-SAP Integration Streamline Procurement?

Steel Manufacturing (Building Products) | USA


Are you purchasing items from multiple vendors? Do you still handle the procurement process manually? Then this case study is what you need. 

Client Portfolio

One of our clients is a USA-based global manufacturer of premium building systems for commercial and residential construction. The client has warehouses spread across multiple countries.  

They approached us to integrate the SAP ERP system of one of their vendors based in Australia with NetSuite. This vendor manufactures painted and coated steel products. They also design, fabricate, and supply custom-engineered building solutions for small to industrial-sized warehouses.  

Automation of the manual processes requires integration. The processes include sending purchase order details, receiving invoices and creating vendor bills.

Problem Statement

Managing the creation of purchase orders, generating invoices, and processing vendor bills manually leads to inefficiencies, errors, and delays. Procurement becomes a complicated process. That is when you compare the rates received through the invoice from the vendor with the prices in the item records.   

Our client faced certain challenges. They were regarding the manual processes in sending Purchase Orders from NetSuite to SAP. They also faced difficulties in manually processing the invoices. They faced the same while creating vendor bills based on the data provided from the vendor’s side.  

What We Suggested

We recommended automating the procurement process. Our solution was integrating NetSuite and the vendor’s SAP ERP system. NetSuite sends purchase orders to SAP on a scheduled basis.  

One can also automate vendor bill creation, variance calculation and approval as per the client requirement. This reduces manual tasks to a great extent.  

Integration Processes:  

We analyzed and proposed an integration between NetSuite and SAP to address the concerns. This enables seamless communication for sending purchase orders and creating vendor bills.

One can send purchase order to the vendor’s system via a scheduled saved search. A notification goes to the client if there are any errors.

A custom record stores the essential details for audit log purpose.    

The vendor’s SAP ERP system generates invoices twice daily based on stored data. One then sends the invoices to NetSuite.

One can note the variances in the rate in the invoice and the price of the item in the vendor record. You can do it under the variances subtab in the custom record.

NetSuite generates vendor bills at the scheduled time, with variances below 0.5 automatically approved.

The client gets an email alert if there are any unapproved variances for review.

The client gets a notification if there are any errors during the process.

Enhanced Security:   

Made use of the capabilities of Auth 2.0 Client Credentials (Machine to Machine) Setup. This facilitates smooth communication between SAP ERP system and NetSuite. 

It ensures enhanced security as one can transfer confidential information through Auth 2.0 Client Credential certifications.   


The variance calculation and approval process were left as a manual process till a certain point. Based on client requirement, our team automated it at a later stage.  

A notification goes to the client for review in case of unapproved variances above 0.5 during vendor bill creation. We provide an option for manual approval from the client’s side.  

Handling of closed orders worried the client. However, we provided a tailor-made solution. Orders completed and closed in the saved search do not go to the vendor’s ERP.  

Instead, the client gets an email from us with details about these closed orders. The client side checks these emails manually.  

Apart from this, the integration process didn’t pose any other significant challenges.   


Customer Success

The implemented solution resulted in significant benefits for our client including:

Automated Purchase Order, Invoice, and Vendor Bill creation processes.

Auto-approval of variances as per client’s requirement, ensuring efficiency and accuracy. 

Accelerated order and bill creation process, enhancing overall operational efficiency.

Automation of manual processes resulted in cost and time savings and allowed employees to focus on strategic initiatives.

Key Achievements:

Reduced manual entry and calculation time by 90%.

Seamless automation of critical processes.

Substantial reduction in manual work, leading to increased productivity and cost savings.

Reduced turn-around time thus enhancing accuracy.

Way Forward

The NetSuite-SAP integration made procurement and bill processes easier, boosting efficiency and accuracy. Moving forward, this integration promises enhanced visibility and control, paving the way for continued growth and success.   

If you’re looking for a revolutionary transition for your business, here’s your destination. Our expert team is ready to assist you with your queries and worries. Reach out to Jobin & Jismi now to discuss your specific requirements.