Netsuite Vendor Prepayments

Hello Dear reader,

In this post we are going to write about Vendor Prepayments in details,
It must be configured in Netsuite, you can read in detail How to Configure Netsuite Prepayments

Vendor Prepayment is feature which track and record deposit amounts paid to vendors before they accept a purchase order for a good or service. These prepayments can be applied fully or partially against open bill for vendors.

After making a vendor payment, it must be apply against vendor bills.

Example:
1. You have to request furniture from your vendor of total $27,000.
2. Vendor asked for $9,000 for goods and material.
3. You can enter a Vendor prepayment of $9,000. Money is credited from your bank/account
and debited to your prepayment account. (learn how to configure prepayment account here)
 4. Vendor sent you 3 bills
 Bill X , value $7,000
 Bill Y, value $10,000
 Bill Z, value $10,000
5. You can apply $3,000 to each bill (you can also use any combinations here)
$3,000 applied to Bill X
$3,000 applied to Bill Y
$3,000 applied to Bill Z
6. Later pending amount can be paid using vendor Bill payments.

Let us know in comment if you have any query.

Thanks
Netsuite Guru 


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