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Setup Process Deposit Prepayment in Oracle Receivables

This document describes the process for handling customer deposits or prepayments in accounts receivable in NetSuite. It involves setting up a deposit transaction type, creating a deposit invoice for the prepayment amount, applying a customer payment receipt to the deposit, creating standard invoices for goods or services, and applying the standard invoices to the deposit to reduce the commitment balance until it is used up.

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Chad Acero
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
1K views

Setup Process Deposit Prepayment in Oracle Receivables

This document describes the process for handling customer deposits or prepayments in accounts receivable in NetSuite. It involves setting up a deposit transaction type, creating a deposit invoice for the prepayment amount, applying a customer payment receipt to the deposit, creating standard invoices for goods or services, and applying the standard invoices to the deposit to reduce the commitment balance until it is used up.

Uploaded by

Chad Acero
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Deposit/Prepayment Process in Accounts

Receivable
Prepayment for goods or services
Customer pays for the Deposit
Invoices are applied against the deposit

Prerequisite Setup:

1. Define Deposit Transaction Type

Navigation: Setup > Transactions > Transaction Types

Name = FPPC Prepay/Deposit (sample only, enter your meaningful transaction type for
Deposit)
Class = Deposit
(copy the rest of setup from screenshots below)
2. Save.

---------- Details ---------

Deposit Tab

Allocation Basis = Lines Only


Receivable Account = 01-000-1201-0000-000 (1201= Accounts Receivable Account)
Offset Account = 01-000-2555-0000-000 (2555 = Customer Deposit Account)

In GL Responsibility add segment value for Customer Deposit Account (sample account
only)
Create a Deposit/Prepayment invoice
1. Navigation: Transactions > Transactions
Enter the below details in the header and main tab and save
Class: Deposit
Type: Choose the appropriate transaction type (refer above for the setup)
Bill to: Enter the Customer name

2. Enter below details in the Commitment tab and save.


Effective Dates: Date range when this commitment holds good. If you dont enter end
date, it will let you enter invoices and credit memos against this commitment indefinitely
until the amount due becomes zero. If you enter end date, Receivables verifies that all
existing invoices against this commitment are included in this date range.
Amount: Enter the amount
Description: Enter/Type Manually the Meaningful description

3. Click to Save.

4. Complete the transaction by clicking on the Complete button.


Click Complete Button
5. You have created a deposit invoice 500976. (Click Incomplete Button if you have
updates)

6. Click Details button

Balance = 1,000.00
Commitment Balance = 1,000.00
7. Close Transaction Workbench.

8. Create a receipt
Say the customer pre-paid $1000 for the goods he is going to buy in the future. Create a
receipt for $1000 and apply it to the deposit.
Enter Receipts Details
9. Click Apply Button
10. Apply the receipt to the deposit.

11. Click to Save


12. Query Deposit Invoice 500976, Click Details to review balances
Navigation: Transactions > Transactions

Click icon to query


Click Find
Balance = 0.00
Commitment Balance = 1,000.00
13. Create an invoice (This is your standard invoice)
Say you shipped out goods worth $500. Thats when you create invoice for $500
14. Complete the invoice

15. Now its time to apply the invoice to the deposit to record that the customer has used up
some amount from the Pre-paid amount.
Go to the Transactions window and query up the invoice you have created above. In the
Toolbar, go to Actions > Apply Deposit
16. Enter the Deposit number you want to apply to and click on OK button.

17. Click to Save


18. Now if you check the balance on the invoice, it will $o since we have applied to deposit.
Query Deposit Invoice 500976, Click Details to review balances

Navigation: Transactions > Transactions

Click icon to query


Click Find
19. Click Details Button

Go back to the deposit and check its balance. You will see a Commitment balance of
$500. This means that the customer can still buy goods worth $500 from us. The next
time customer orders goods, you can create invoice again and apply that invoice to this
deposit. When the commitment balance comes down to $0, you can renew this or create a
new one.

Balance = 0.00
Commitment Balance = 500.00 [1,000.00 (deposit amount) less 500.00 (standard
invoice)]

---END---

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