Vendor Prepayments

Overview of Functionality

The Vendor Prepayments SuiteSolution allows advance payments to vendors to be created,
tracked and applied to vendor bills.

  • One or more prepayments can be created from approved purchase orders.
  • Bills for prepayments are auto-created for approved purchase orders with prepayments and can be paid using any NetSuite Service payment method.
  • Upon payment of the bill for prepayment, an unapplied prepayment credit is generated and can either be automatically applied to bills for the related purchase order or reviewed before payment and potentially modified.
  • If a purchase order is closed before the prepayment is fully applied, the remaining prepayment credit amount can be applied to any bill.
  • Prepayment credit transactions allow gain and loss on foreign currency to be realized. Differences in the exchange rate between the time of the advance payment and application to purchase order bills result in foreign currency gain or loss.
  • A user interface with links to all bills with eligible unapplied credits is provided
  • Prepayment preferences can be specified to indicate how prepayments are processed. The options include default prepayment clearing account, apply for advances manually or automatically, email notifications and templates used for notifying the vendor.
  • Preferences can be set for each subsidiary or applied globally in a NetSuite Service, OneWorld account.


  • Standalone prepayments, created without reference to a purchase order, are not supported.
  • Scheduling for prepayment credit application is not supported. The amount of the prepayment credit that is applied to bills to reduce payment can be manually overwritten using the “Prepayment Review” page after bill entry.
  • The application of prepayment credits to bills that are linked to the same purchase order is enforced when bills are paid individually, but not when multiple bills are paid from the vendor or bulk bill payment pages
  • All standard NetSuite Service usage and governance limits apply

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