In NetSuite, applying a journal entry (JE) to a vendor bill isn’t the typical way to process a payment. However, it can be a helpful technique in certain situations. Here’s a breakdown of the process:
Why Use This Method:
This method is generally used when the standard bill payment process in NetSuite isn’t suitable. Common scenarios include:
- Partial Payment with JE: If you want to record a partial payment using a JE for a specific expense category instead of the entire bill amount.
- Correcting an Existing Bill: If there was an error in the original bill and you need to adjust it using a JE.
Important Note: This process creates an internal offset within NetSuite, it doesn’t involve actual payment to the vendor through your bank account.
Steps to Apply a JE to a Vendor Bill:
- Navigate: Go to Transactions > Payables > Pay Bills.
- Select Vendor: Choose the vendor you want to apply the JE to.
- Bill Selection (Optional): If applicable, select any outstanding bills from this vendor you want to pay traditionally.
- Journal Entry Selection: In the same window, locate the Journal Entries sublist. Here, you’ll see a list of open JEs.
- Identify the JE: Pick the specific JE that has a debit to the Accounts Payable account (usually named “Accounts Payable” or similar) and references the vendor in the “Name” field (this helps associate the JE with the vendor).
- Apply and Save: Check the boxes next to both the bill (if applicable) and the chosen JE. Click Save.
By checking both and saving, NetSuite will apply the JE amount, effectively offsetting the vendor bill (or a portion of it) within the system.