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NetSuite Vendor Prepayment Enhancements

Leigh Andonian

May 28 2020

2 min read

Do you have vendors that require deposits before they will begin work on a project for you? NetSuite now has the ability to not only record these prepayments in a way that is easy to report on, but also allows for the automatic application of them to their associated vendor bills, reducing manual efforts and saving time.

In order to automatically apply it to a vendor bill, a Purchase Order and Vendor Prepayment must be linked. This can be done by creating a new prepayment and selecting a Purchase Order in the new “Purchase Order” field.

NetSuite Vendor Prepayments

Once the you apply the prepayment, it is not possible to change the linked Purchase Order. However, it is possible to manually apply a remaining amount to a Bill that is from a different Purchase Order as long as it has the same Vendor, Currency and Subsidiary.

Some additional enhancements include the following:

The ability to allow for Vendor Bills to be approved in the Employee Center role (this permission must be manually enabled as it is not a default permission);
Support for Custom GL Lines;
Improved validations to minimize errors when multiple users work with vendor prepayments concurrently; and
Exposure of Vendor Prepayment records in SuiteScript.

Setting Up NetSuite Vendor Prepayments

To start using NetSuite Vendor Prepayments:

Navigate to Setup > Company > Enable Features > Accounting > Advanced Features and check the Vendor Prepayments box.
Set up a Vendor Prepayment account

The Auto-Apply Vendor Prepayments preference will be set by default for all prepayment transactions that meet the Auto-Apply conditions. If your settings to not meet the conditions, you will have to manually apply the prepayment. If you want only to apply manual payments, you must turn off the Auto-Apply preference by navigating to Setup > Accounting > Preferences > Accounting Preferences > Accounts Payable.

Have any questions about NetSuite vendor prepayments? Please contact us at any time!

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About the Author

Leigh Andonian

Leigh Andonian, MBA, MSA is a Netsuite Implementation Consultant at Sikich.