Prepayments (NetSuite 2.0)
You can mark bills as prepayments and link them to POs without matching — i.e., PO matchingThe process of matching goods and services from purchase orders to invoices (2-way matching), and receipts (3-way matching) is skipped. Prepaid amounts can be applied to subsequent invoices on either the "PO matching" screen or the "Invoice review" screen. Prepayment lines are automatically coded to the linked GLA general ledger (GL) is used for recording transactions related to business assets, liabilities, equity, revenue and expenses. account so that you don't need to take any additional action to code these transactions in your ERPs.
- The prepayment feature is relevant for NetSuite 2.0 payers only.
For the prepayment invoice itself, the linked PO must have at least one item line, or both item and expense lines, but it cannot have expense lines only.
- Negative PO lines are not supported.
This prepayment feature supports the following use cases:
One invoice only, with or without a dedicated prepayment bill line
PO doesn't specify the prepayment on a separate line
Negative bill line equals the prepaid amount
Partial application of prepayment
Multiple prepayments on a single PO
Multiple POs with prepayments linked to a single bill
How does it work?
On the bill, when you select "Mark as prepayment", the PO matching process is skipped, but the bill itself will be linked to the PO and we'll validate that the bill amount is not greater than the PO unbilled amount. You can apply prepaid funds to any bill linked to the PO.
You can mark a bill as a prepayment from the "Invoice review" screen.
You can also mark a bill as a prepayment from the "PO matching" screen by clicking on the “Actions” menu and selecting "Mark for prepayment".
How to apply the prepayment on future bills for reconciliation
On subsequent bills linked to the same PO, a new prepayment box appears where you can choose to apply available prepaid amounts (the "PO matching" screen is shown as an example below).
Once the amount has been applied, a new negative prepayment bill line is created (it is automatically coded to the same account as the original prepayment invoice).
The prepayment line is a type of non-PO line, so no PO line can be matched against it. You can proceed to coding (from the "PO matching" screen) or submit the bill for approval (from the "Invoice review" screen).
On the "PO matching" screen, you can view any and all prepayments applied to a linked PO by hovering your mouse over "See events" in the prepayment panel to gain visibility into past actions.