Applying a Vendor Prepayment when pay a vendor

Question

Hi Everyone, I hope you can help me on this scenario

Context (a):

* Company A made a prepayment to Vendor Y,  $100, on 1/1/2026
* Company A wants to pay Vendor Y on 1/10/2026, by picking up that prepayment ,$100, in "Pay single vendor" function ,like below, but the prepayment is not showing up,

Question : is there a way to show up the prepayment when apply the payment to a vendor?

Context (b)

* Company A reimburse Customer B for some cargo damages, $200, and recorded this as a "Vendor prepayment" ( the vendor code is also shared as Customer) on 3/1/2026 
* Company A receive the insurance recovery, $200,on 4/1/2026, and recorded it as a customer deposit

Questions: how to offset this Customer deposit with Vendor prepayment?

Judith Culanding-Oracle · Accepted Answer

Hi @Kevenale

Context A

A Vendor Prepayment does not appear as a bill or payment item to select during bill payment. Instead, the prepayment must first be applied to a Vendor Bill using a Vendor Prepayment Application. After the application, the bill's remaining balance is what gets paid through Pay Bills.

To Appy a Vendor Prepayment:

* Open the Vendor Prepayment record
* Click the Apply button
* Select the transactions to be applied
* Click Save

The Vendor Prepayment follows a separate process and is posted to a dedicated account. This is why a Vendor Prepayment Application record is created when the prepayment is applied.

The Vendor Prepayment will not appear on the Pay Bills page because it is not recorded against the Accounts Payable account. Only transactions that impact the Accounts Payable account are available for selection on the Pay Bills page.

Context B

A Customer Deposit cannot be directly offset against a Vendor Prepayment in NetSuite. Although the entity is shared as both a Customer and Vendor, these transactions belong to different subledgers and accounting processes. Vendor Prepayments are managed through the AP process and applied using Vendor Prepayment Applications, while Customer Deposits are managed through the AR process and applied to customer transactions. To offset the balances, an accounting adjustment (such as a journal entry) would typically be required, subject to your company's accounting policies and approval requirements.

Judith Culanding-Oracle · Accepted Answer

Hi @Kevenale

Just checking in if you were to see the previous comments. Let us know if you need clarifications. Thanks!

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