The Vendor Prepayments feature records and tracks deposit amounts paid to vendors before they accept purchase orders for a good or service. You can apply these prepayment amounts against open bills for the vendor. Vendor Prepayments enables you to record and track multiple prepayments and prepayment applications for your vendors.
After you make a prepayment to a vendor, you must apply the prepayment against the vendor bills. You can apply the prepayment manually, or configure NetSuite to apply the prepayment automatically. You can either apply the full prepayment amount to one bill or split the prepayment amount across several bills from the same vendor.
A vendor prepayment is a posting transaction that impacts the general ledger without offsetting the Accounts Payable account. When the vendor prepayment is applied, the Accounts Payable account is offset.
We can only select a bank account or credit card account for a vendor prepayment transaction. The bank account currency and transaction currency should be the same. The accounts will be displayed (to select from the dropdown when creating a vendor prepayment) based on the vendor subsidiary and currency. So if you need a common account to be selected for all vendors, you can create a bank account sharing all the subsidiaries(but the currency should be the same for all).