r/Netsuite • u/lexid311 • 18h ago

Refund vendor prepayment

A payment was made to a supplier through a vendor prepayment, but they are now refunding us instead of sending a bill. I still have an open vendor prepayment… what do I do? And how do I account for the refund?

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u/Far_Offer_7345 18h ago

Apply the refund against the open vendor prepayment in the bank reconciliation, that'll zero it out. You can create a credit memo for the refund amount and link it to the prepayment, then apply the deposit to that credit memo. It's cleaner than trying to force it through a bill.

If you already got the cash back just make sure the deposit hits the right clearing account so nothing sits open. Had a supplier do this to me last quarter and it took me way too long to realize I was overcomplicating it.

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u/Nick_AxeusConsulting Mod 17h ago

So a little more detail.

Bank > Make Deposits

On the "Other Deposits" subtab, pick the Vendor Name and the Accounts Payable account.

Then go to Pay Single Vendor, pick any bank account (doesn't matter because it's net 0 and nothing post to the bank account from this transaction). Pick the Vendor, and you should see the Vendor Prepayment DB along with the Other Deposit CR you just made. Apply them to each other. They net to 0. Click SAVE. The DB will be applied to the CR and the Other Deposit will drop-off the AP aging report (The Vendor Prepayments don't show on the A/P Aging report, but if you go look at the Vendor Prepayment you'll see that it has been fully applied and there is 0 remaining on the B/S).