Entering Vendor Prepayments

You start providing deposits to your vendor by entering a new vendor prepayment. When the prepayment is applied, the status of the transaction is paid. The bank or credit card account is credited, while the prepayment account is debited.

After entering a vendor prepayment, you can immediately apply the prepayment amount to bills from the same vendor, or you can complete the application later.

Important:

This is a posting transaction in the general ledger.

You can associate a vendor prepayment with a purchase order. When you associate a vendor prepayment with a purchase order, NetSuite can automatically apply the prepayment to the bills associated with the purchase order. NetSuite does this using the Auto-Apply accounting preference. For more information about this preference, see Applying Vendor Prepayments With Auto-Apply.

You can associate a vendor prepayment with a purchase order from the Vendor Prepayment page. You can also use the Purchase Order page. For more information about entering prepayments from a purchase order, see Entering Vendor Prepayments From a Purchase Order. Additionally, you can associate multiple vendor prepayment transactions to the same purchase order.

To enter vendor prepayments:

Go to Transactions > Payables > Enter Vendor Prepayment.
Complete the Vendor Prepayment form as described in the section below.
When all the required fields are complete, click Save.

You can complete the application after saving the vendor prepayment, or later. To complete the application, see Applying Vendor Prepayments Manually.

Primary Information

In the Payee field, select the payee from the list.
- The Prepayment Account field autofills with the default prepayment account for the payee. You cannot change the account from this page. To change the Prepayment Account, see Configuring a Default Vendor Prepayment Account.
- The Currency field autofills with the default currency for the vendor. If there is more than one currency for the payee, you can change this value. This field is available if you use the Multiple Currencies feature. For more information, see Multiple Currencies.
- The Exchange Rate depends on the currency selected for the payee, and cannot be changed. If the currency of the Payee is different from your base currency, the Exchange Rate field shows the corresponding exchange rate value. For more information about exchange rates updates, see Currency Exchange Rates.
Select the Purchase Order associated with this vendor prepayment, if you have one for the vendor. The Purchase Order menu shows the document number of purchase orders in one of the following statuses:
- Pending Receipt
- Pending Bill
- Partially Received
- Pending Billing / Partially Received
Select the Account.
- You can select a bank account or credit card for this payment. The bank account currency must be the same as the transaction currency.
- The Check # field autofills with the value of the document number. When using a bank account, the Check # field autofills with the next consecutive number generated for the account. You can change this number. When choosing a credit card, the Check # field is empty, and you cannot change the value.
  
  Note:
  In the vendor prepayment transaction, the Check # corresponds to the Document Number for that particular vendor. As with other transactions in NetSuite, you can customize the Document Number for vendor prepayment transactions. For information about how to customize the Document Number, see Set Auto-Generated Numbers.
- For information about printing checks, see Printing Checks.
The Balance field shows the balance of the currently selected account.
If you use the In-Transit Payments feature, the Available Balance field displays the balance of the currently selected account, considering payments that are in transit.
Enter the Payment Amount for this prepayment. When you select a Purchase Order, the Payment Amount autofills with the total purchase order amount. You can edit the Payment Amount.
To modify the Date, enter or pick a different date. The default value corresponds to the current date.
To modify the Posting Period, select a different posting period from the dropdown menu. The default value corresponds to the current posting period.

If you use approval routing, the posting period is set upon approval. For more information, see Posting Period for Transactions Subject to Approval.
Check the appropriate box:
- To Be Printed – adds a check for this vendor prepayment to the print queue.
- Voucher – adds a voucher for this vendor prepayment to the print queue.
In the Approval Status field, select the approval status of this transaction.
- Pending Approval – the transaction is awaiting approval
- Approved – the transaction is approved
- Rejected – the transaction is denied
In the Next Approver field, you can select an employee with the authority to approve or reject this transaction.

Classification

If you have a OneWorld account, from the Subsidiary list, you can select a different subsidiary from the default.
Select the Class, Location, and Department if you track them. When selecting a subsidiary, only the class, location, and department for that subsidiary are available.

Payee Address

In the Address to Select field, select an address of the payee you want to pay. If your selected payee has a default address set, the Address to Select field populates with the default information.

EFT

In the Preferred Entity Bank field, select which entity bank record to apply to the payment. If you leave the field blank, the Primary entity bank for the Vendor record applies to this payment.

To enter vendor prepayments:

Primary Information

Classification

Payee Address

EFT

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