Customer Deposit Lifecycle
Customer deposits (prepayments, advance payments) require careful handling: receipt, recording, and application to invoices. Workflow can automate reminders and application prompts.
Step 1: Receive and Record Deposits
When a customer deposit is received, record it against a liability account. Workflow can trigger: send receipt confirmation, create task for deposit application when related SO is fulfilled.
Step 2: Application Workflow
When an invoice is created from a sales order that had a deposit, NetSuite can auto-apply the deposit. Workflow can validate that application is correct and notify customer.
Step 3: Partial Application
For multiple invoices against one deposit, use workflow or script to suggest application order (e.g., oldest invoice first). Flag over-application for review.
Step 4: Unapplied Deposit Handling
Deposits that remain unapplied after X days: create task for AR, send reminder. Consider refund workflow if order is cancelled.
Best Practices
- Use clear naming for deposit accounts and transactions
- Track deposit aging separately
- Define policy for unused deposit refunds
YRK Consulting helps automate AR processes including deposit handling.