The Vendor Prepayments feature records and tracks deposit amounts paid to vendors prior to the acceptance of a purchase order by the vendor.
We can apply these prepayment amounts against open bills for the vendor.
We can apply the prepayment manually or we can configure NetSuite to apply the prepayment automatically.
Vendor Prepayment feature can be enabled by;
- Go to Setup > Company > Setup Tasks > Enable Features.
- Click the Accounting subtab.
- Under the Basic Features section, verify that the A/P box is checked.
- Under the Advanced Features section, check the Vendor Prepayments box.
- Click Save.
Also we need to choose a vendor prepayment account under accounting preferences to work with vendor prepayments.
We can enter vendor prepayments by navigating to;
- Transactions > Payables > Enter Vendor Prepayment
- Complete the Vendor Prepayment form.
- When all the required fields are complete, click Save.