How do I record a customer payment against an invoice?

Transform the invoice with Accept Payment, or use Receive Payments, then tick the invoices it clears in the Apply sublist. That reduces accounts receivable and the invoice's open balance; an unticked receipt sits unapplied as a customer credit.

What is Undeposited Funds for?

It is a clearing account. The payment debits Undeposited Funds, then a Bank Deposit moves the money to the bank account, so recorded cash matches the bank statement. Posting straight to bank skips that reconciliation step.

How does currency and FX work on a OneWorld customer payment?

The payment is in the invoice's transaction currency. The exchange rate at the payment date can differ from the rate on the invoice, and NetSuite posts that difference as a realized exchange gain or loss against the subsidiary's base currency.

Can one payment clear invoices from two subsidiaries?

No. A customer payment belongs to one subsidiary and one A/R control account, so clear each subsidiary's invoices with its own payment in that entity.

NetSuite Customer Payment: setup, key fields & best practice

The NetSuite Customer Payment applies received funds against open invoices, reducing accounts receivable. Create it by accepting payment on the invoice, then tick the invoices it clears in the Apply sublist. In OneWorld the subsidiary sets the A/R control account and base currency, and a payment-date rate difference posts as realized FX.

Setup

Decide the cash workflow before going live: post receipts to Undeposited Funds and clear them with a Bank Deposit (so cash reconciles to the bank statement), or post straight to a bank account. Set the default on the Customer Payment form and the A/R account per subsidiary.
Confirm payment methods, the deposit/Undeposited Funds default and approval routing match the client's process, and that each subsidiary's A/R control account is set before migrating any open AR or applying payments.

Key fields

Customer (Entity). The payer. Drives the transaction currency, which open invoices appear in the Apply sublist, and the subsidiary the payment belongs to in OneWorld.
Subsidiary. In OneWorld, sets the legal entity, base currency and the A/R control account the payment credits. Must match the invoices being cleared — a payment cannot span subsidiaries.
A/R Account. The receivable control account the payment reduces. Defaults from the subsidiary; must be the same control account the invoices posted to or the sub-ledger won't tie to the GL.
Deposit To / Undeposited Funds. Where the debit lands — Undeposited Funds (a clearing account cleared later by a Bank Deposit) or directly to a bank account. The Undeposited Funds checkbox controls this.
Payment Amount & Apply sublist. The amount received and the invoices it clears. Any unapplied amount stays as a customer credit/overpayment rather than reducing a specific invoice's open balance.
Currency & Exchange Rate. The payment is in the invoice's transaction currency; the rate at the payment date can differ from the invoice rate, and NetSuite posts the difference as a realized exchange gain or loss.
Posting Period. Sets the period the cash and A/R reduction post to. A locked or closed AR/GL period blocks the save — the usual cause of a failed payment at period end.

Best practice

Apply each receipt to specific invoices in the Apply sublist rather than leaving it unapplied, so AR ageing stays accurate and the AR sub-ledger ties back to the GL control account at reconciliation.
Route receipts through Undeposited Funds and clear them with a matching Bank Deposit so cash reconciles to the bank statement, instead of posting straight to bank and losing the clearing step.

Common errors

Frequently asked questions

How do I record a customer payment against an invoice?: Transform the invoice with Accept Payment, or use Receive Payments, then tick the invoices it clears in the Apply sublist. That reduces accounts receivable and the invoice's open balance; an unticked receipt sits unapplied as a customer credit.
What is Undeposited Funds for?: It is a clearing account. The payment debits Undeposited Funds, then a Bank Deposit moves the money to the bank account, so recorded cash matches the bank statement. Posting straight to bank skips that reconciliation step.
How does currency and FX work on a OneWorld customer payment?: The payment is in the invoice's transaction currency. The exchange rate at the payment date can differ from the rate on the invoice, and NetSuite posts that difference as a realized exchange gain or loss against the subsidiary's base currency.
Can one payment clear invoices from two subsidiaries?: No. A customer payment belongs to one subsidiary and one A/R control account, so clear each subsidiary's invoices with its own payment in that entity.

Last reviewed: 2026-06-26 by Wouter Nortje, CA