Setting Accounting Preferences

To set accounting preferences, go to Setup > Accounting > Accounting Preferences.

To determine how NetSuite applies payments that are missing invoice numbers, set the Apply Payments Without Invoice Numbers preference, which is on the General subtab, in the Accounts Receivable section.

From the list, select your preferred handling method for generated customer payments that are missing invoice numbers:

Note:

The method you choose determines how NetSuite suggests invoices for payment application when the imported bank line does not specify invoice numbers.

Apply by payment amount first, then to oldest invoice – NetSuite makes the following suggestions:
- If an invoice has an amount due equal to the payment, NetSuite suggests that invoice for payment application. The system does not consider discounts or the preallocated amount due of an invoice.
- If no invoice contains an amount due equal to the payment, NetSuite suggests the customer's oldest invoice (or invoices) for payment application. The system determines the oldest invoices based on the Aging Reports Use preference, which uses the due date or transaction date. If your aging preference is set to Due Date but your invoices do not specify one, the system suggests the oldest invoice using the transaction date.
  
  Note:
  If multiple invoices have the same amount due as the payment, NetSuite suggests the oldest invoice from the group for payment application.
By default, NetSuite uses the Apply by payment amount first, then to oldest invoice method.
Apply to oldest invoice by date of aging preference – NetSuite suggests the customer's oldest invoice (or invoices) for payment application. The system determines the oldest invoices based on the Aging Reports Use preference, which uses the due date or transaction date. If your aging preference is set to Due Date but your invoices do not specify one, the system suggests the oldest invoice using the transaction date.
Keep payment unapplied – NetSuite does not display invoice suggestions for payment application or automatically apply the payment to invoices. You must manually apply the payment to the appropriate invoice (or invoices). See Recording a Customer Payment.

Important:

If you select the first or second option, set the default accounts receivable account to ensure that NetSuite uses the correct account. Use the Default Receivables Account preference at Setup > Accounting > Accounting Preferences > Item/Transactions. You can override this preference for a specific customer by defining the Default Receivables Account field on the customer record. For more information, see Entering Financial Information on the Customer Record.

If you do not set a default accounts receivable account, NetSuite applies payments without invoice numbers to the oldest invoices associated with the last used accounts receivable account.

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