Apply Deposits to Remaining Balance on Vendor Prepayment

In this article you can find alternate solution for Enhancement 576715. Currently, NetSuite system only allows Vendor Prepayment records to be applied on Open Bills.

You can offset the Deposits and Balance of the Vendor Prepayment either by creating a dummy Vendor Bill or by lowering the amount of Vendor Prepayment.

To create Dummy Vendor Bill
Note: This will only be feasible if you do not mind the movement in Accounts Payable account. But all in all, the GL impact is clear and accurate.

1.   Create Dummy Vendor Bill

   1. Navigate to Transactions > Payables > Enter Bills

   2. Vendor: Populate the same vendor with the transactions affected

   3. Click Expenses and Items 

   4. Click Expenses

   5. Account: Select a dummy expense account
      Note: The dummy expense account to be used can be anything like a dummy expense account or miscellaneous account. It won't matter since its going to be reversed immediately.

   6. Amount: Enter the amount similar to the value of the Vendor Prepayment

2. Apply the Bill created to the Vendor Prepayment

   1. Click View on the Vendor Prepayment record

   2. Click Apply button

   3. Click Apply tab

   4. Apply: Check the box for the Vendor Bill created 

   5. Click Save

3. Create a Journal Entry

   1. Navigate to Transactions > Financial > Make Journal Entries

   2. Click Lines

   3. Account: 

      • Debit: Cash/Bank

      • Credit: Dummy Expense account selected on the Bill created

   4. Click Save

To Lower Vendor Prepayment Amount and create Cashback and Deposit/or use Journal Entry

1.   Delete Vendor Prepayment Application for Vendor Bill

   1. Click Edit

   2. Click Actions

   3. Click Delete

   4. Are you sure you want to delete this transaction?: Click OK

2. Edit Vendor Prepayment and lower amount similar to the Bill

3. Apply Bill to the Vendor Prepayment
   Note: Status becomes Fully Applied

4. Create a dummy transaction to replace the overpaid amount in original Prepayment - Deposit > Cashback subtab / or Journal Entry

5. Create a Bank Deposit (Other Deposits subtab) /or Journal Entry to record the returned money and clear the GL impact with transaction from step 4

Note: Any dummy expense account can be used for the balancing account - like a holding account.