This article is relevant if you require NetSuite to generate advance payment requests for customer deposit purposes and seek control over which item lines determine the values.
Background
As the recognized leader in NetSuite customer deposit accounting since 2016, we have developed extensive capabilities for organizations to optimize their transaction management within NetSuite for deposit accounting. While NetSuite’s Customer Deposit record effectively represents liabilities for pre-earned monies, it lacks a native feature to request these funds. Businesses selling goods and services to other companies often encounter accounts payable departments that expect invoices from vendors for payment processing setup.
In my recent 2023 article, Learn How to Drive NetSuite Customer Deposit Requests, I explore how to request funds from any business record in NetSuite. Though Sales Orders are commonly used to initiate this process, requests can also originate from Estimates, Opportunities, Projects, or other relevant records.
A recent case involved a client who valued these capabilities but needed more than just a simple percentage of the transaction for deposit requests, like a 25% upfront payment. Their sales order lines were intricately designed to play a unique role in their fulfillment process. Therefore, they required the ability to tailor their deposit requests based on individual sales order line values.
Leveraging Transaction Lines for Tailored Customer Deposit Requests
After a careful analysis of our client’s specific business needs, we understood the importance of selectively driving customer deposit requests using distinct transaction lines. Consider, for example, the process of first requesting funds for product lines, followed by a separate request for shipping costs. This approach allows for more nuanced requests than simply asking for a blanket 75% upfront on the sales order. It’s a flexible method that aligns with the customer’s order specifics.
Fortunately, our existing Customer Deposit Generator infrastructure, established in 2016, made it relatively straightforward to fulfill this requirement. We only needed to add a utility that easily identifies which sales order lines should be included in a customer deposit request and allows customized customer-bound communication.
Our Customer Deposit Generator then takes over, efficiently crafting Advance Deposit Invoices. As detailed in my article, Solved: NetSuite Customer Deposits and Advance Payment Accounting, our Customer Deposit Generator materializes the way deposit invoices appear in NetSuite’s accounts receivable aging, ensuring accurate accounting for unearned funds.
Explore the linked images for a deeper insight into the system’s architecture.
Watch a NetSuite Customer Deposit Line Based Generator (2:50)
The video (2:50) below is from a discussion with Chidi O., Technology Practice Manager, who worked with the client and other Prolecto analysts to conceive the solution.
Install the Customer Deposit Generator
In line with the innovative solutions developed in our Labs, this tool is accessible to our clients without licensing fees. Adopting customer deposit-based accounting with this tool streamlines order management and cash receipt processes. It enhances cash flow forecasting, as all incoming cash, whether earned or unearned, is now visible on the accounts receivable aging.
If this article resonates, consider subscribing to receive notifications for new posts. If you are prepared to address your NetSuite customer deposit challenges, let’s have a conversation.
Marty Zigman
Holding all three official certifications, Marty is regarded as the top NetSuite expert and leads a team of senior professionals at Prolecto Resources, Inc. He is a former Deloitte & Touche CPA and has held CTO roles. For over 30 years, Marty has produced leadership in ERP, CRM and eCommerce business systems. Contact Marty to set up a conversation.
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