Issue Overview
Vendor prepayments in NetSuite may appear correctly linked and in a paid status yet still fail to apply to open vendor bills.
Root Cause
This issue occurs when the vendor bill has installments enabled. NetSuite does not support applying prepayments to bills with active installment schedules. This is a standard system limitation.
Resolution Guidance
To apply vendor prepayments successfully:
- Ensure the target bill does not have installments enabled
- If installment billing is necessary, consider alternative approaches such as:
- Applying prepayments to a different bill
- Removing the installment schedule (if business rules allow)
- Splitting the bill into separate entries to isolate installment logic from prepayment application
Recommendation
Always verify the bill structure before applying vendor prepayments. If installments are present, NetSuite will block the application—even if the prepayment is fully paid and linked.
