Correctly applying payments to vendor bills is a cornerstone of the accounts payable process in NetSuite. This ensures accurate vendor balances, timely payments, and a clear audit trail. This guide provides a detailed, fact-checked walkthrough of the various methods for creating and applying vendor payments.

Methods for Creating Vendor Payments

NetSuite offers several paths to initiate a vendor payment, each suited to different workflows:

1. Pay Bills Page (Bulk Payments): The most common and efficient method for routine payment runs. Navigate to Transactions > Payables > Pay Bills.

2. From the Vendor Record: For paying a single vendor. Open the vendor record and click the Make Payment button.

3. Direct Bill Payment: Open a specific bill and click the Make Payment button.

   
   

Using the Pay Bills Page

The Pay Bills page is the central hub for managing vendor payments. It allows you to select and pay multiple bills for multiple vendors in a single batch.

Process Flow:

1. Navigate to Transactions > Payables > Pay Bills.

2. Select the appropriate A/P Account and the Bank Account from which the payment will be made.

3. The page will display a list of all open and approved vendor bills.

4. Use the filters at the top to narrow the list by vendor, due date, or other criteria if needed.

5. Check the box next to each bill you intend to pay.

Key Actions on the Pay Bills Page

The Impact of Saving a Bill Payment

Once you save the payment transaction, NetSuite performs several actions automatically:

• GL Impact: A credit is posted to the selected bank/cash account (decreasing its balance), and a debit is posted to the Accounts Payable (A/P) account (decreasing the liability).

• Bill Status: The status of the bill is updated to Paid in Full if the payment covers the entire balance. If it was a partial payment, the bill remains open.

• Vendor Record: The payment transaction is linked to the vendor record and the associated bills, providing a complete transaction history.

  
  

Common Issues and Troubleshooting

• Bill Not Appearing on the Pay Bills Page:

• Verify the bill has been approved and is not on hold.

• Check the filters on the Pay Bills page to ensure the bill is not being excluded.

• Confirm you have selected the correct A/P account.

• Incorrect Payment Amount: Double-check that you have not accidentally applied credits or taken a discount that was not intended.

  
  

Best Practices

• Use the Pay Bills Page: For efficiency, always use the Pay Bills page for your regular payment runs instead of paying bills one by one.

• Verify Totals: Before saving, always double-check the total payment amount at the bottom of the page to ensure it matches your intended payment.

Set the Correct Date: Ensure the payment date is accurate, as this impacts aging reports and discount calculations.