Vendor Advance Payment is when payment is made to a vendor before the vendor supplies the required service or material.
As per NetSuite help, the suggested advance payment process involves first writing a check against a clearing ledger account and then issuing a vendor credit against the account, which can later be adjusted against an invoice.
Also, the journal entry for the TDS on the advance is required to be passed separately.
Actual Payment tobe process will be generated considering both base Amount and TDS amount.
The Netsuite vendor advance process has been simplified via the plugins created by Powersoft to provide better visibility, tracking and automatic taxation effects. The details are mentioned below.
Advance Process Flow :
The Netsuite Plugin for Vendor Advance Payments based on Indian tax rules provides an efficient and simplified process. This plugin, along with the Vendor Ledger and TDS Report provides a clear visibility of the entire vendor transaction, any advance payments made and the outstanding balance payment.