ANS-1127 · PURCHASE & VENDOR MANAGEMENT
How to Process a Vendor Payment and Apply a Bill Credit in NetSuite
Learn how to record an incoming vendor payment as a deposit and apply it against a bill credit in NetSuite.
Short answer
To accept a vendor payment in NetSuite, first create a deposit via Transactions > Bank > Make Deposit, selecting the vendor and AP account. Then, associate the deposit with the relevant Bill Credit using the Pay Single Vendor feature to ensure proper application and G/L impact.
Scenario
Organizations often need to record incoming payments from vendors, particularly when a vendor issues a refund or credit that needs to be applied against an outstanding balance or recorded as a deposit. This process involves correctly linking a vendor's credit with a deposit to ensure accurate accounting and G/L impacts.
Solution
To process a vendor payment and apply a bill credit in NetSuite, follow these steps:
Navigate to
Transactions > Bank > Make Deposit.On the 'Other Deposits' tab, select the relevant Vendor under the 'Name' column.
Enter the 'Amount' (e.g.,
X) and specify the AP account. This account should be the same as the Bill Credit's AP account to ensure proper G/L impact, crediting from AP.To associate the newly created Deposit with the corresponding Bill Credit, navigate to
Transactions > Payables > Pay Single Vendor.Within the 'Pay Single Vendor' page, select both the Bill Credit and the Deposit to link them. This action effectively associates the Bill Credit with the Deposit, reflecting the vendor payment accurately in the general ledger.
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