What is the most difficult element to manage in an e-commerce business? Most enterprises answer that it is finances. This is because it comes with huge data, and even a bit of discrepancy can incur big losses. To avoid this, NetSuite accounting offers various functionalities that simplify financial management for organizations. One such feature, the customer deposit which assists businesses in tracking the advanced payments of orders. Stay reading the blog to understand this functionality and learn how it can be utilized efficiently using NetSuite integrator.  

What is the Customer Deposit feature in NetSuite?

Let us begin with understanding what this feature is all about. Suppose a shopper buys a product and makes an advanced payment for it. How will the seller record this payment? This is where the Customer Deposit in NetSuite helps sellers streamline finances and cash flow automation. Hence, it is the payment record of the shoppers made in advance. This small feature has great relevance in making e-commerce financial management hassle-free for the sellers. 

What Information Does It Provide? 

Here is a sample of a Customer Deposit created in NetSuite. We will see what particulars it has and what information a seller or any business owner can get out of it. 

Customer  Name: It displays the name of the buyer who has made the order. 

Currency: This field displays the currency in which the payment for the order was made. 

Payment Amount: Under this field, sellers get to know how much the buyer has paid for the order. This is important, as the seller can offer a discount or provide a cashback on this amount to make clients happy. 

Payment Method: This displays the method of payment used by the shopper, such as card, internet banking, e-wallets, or any other. 

Customer Deposit Balance: This field is in the Financial sub-tab, and it displays the cumulative amount of unapplied deposits for the buyer. 

Why does Customer Deposit have so much Importance? 

The reason it holds such significance is not just because it is a record of the advanced payment by the shopper. It also provides additional information that is highly beneficial for organizations and helps them streamline their finances. Here are a few more factors that make it a top functionality in NetSuite: 

Efficient Accounting for Easy Finances 

No doubt, this is the biggest benefit of Customer Deposit functionality in NetSuite. It helps manage the finances seamlessly because it clearly distinguishes advanced payments from actual revenue. Until the order is fulfilled completely, it is labeled as a liability in the general ledger. 

Enhanced Cash Flow with Improved Financial Resources 

It give a glimpse of the future revenue coming from the product. Through this, a business can manage its finances much better by understanding the resource requirements well in advance. 

Understanding Demography to Cater Better  

Since it provides information related to the buyer’s method of payment, sellers can get an idea of which payment method is mostly used by them. This will help them understand their demographics. Hence, sellers can offer discounts and vouchers to cater to their customers so they can feel more connected with the brand and purchase items again. 

Useful in Advanced Analytics of Customer Data

Once an enterprise gets a good hold of buyers’ data, it can easily analyze it to make decisions. This will help them make better policies and target a specific audience to improve sales. 

Apply Customer Deposit to the Invoice 

Sellers are not required to create a separate invoice for the orders, as deposits can be applied against an invoice. It can be applied to an invoice in two ways: 

1. through a customer deposit record 

2. using a customer payment form. 

This helps the sellers save time and make no errors. 

How to Create a Customer Deposit in NetSuite? 

After learning the advantages of Customer Deposit, you must be curious to learn how it can be created so its benefits can be utilized quickly. 

Here is how businesses can do the same: 

1. Reach the Record Customer Deposits page. 

2. Choose the customer who made the payment. 

3. Enter the amount of the payment.

4. Select the Account tab to deposit the payment into the bank account.

5. Enter other details such as location, class, and department linked with the order. 

6. Enter the payment method and other information in the payment method subtab. 

7. In the Relationship subtab, edit the primary contact, if required. 

8. Finally, click on the save button. 

Automate Customer Deposit with Robust NetSuite Integrator

Now, looking at the above lengthy process, e-commerce sellers and other NetSuite users might feel puzzled. They would have the same question in mind: Do I have to do this with every order? How will I focus on other management aspects?  Well, these queries are entirely practical, but there is nothing to worry about. Robust NetSuite Integrator by WebBee leverages automation to make the customer deposit creation easy for every order. With just a few clicks, businesses can utilize this functionality without any technical expertise and even faster. 

Note: Explore how customer deposit record in your NetSuite account.

Difference Between Manual vs Automated Customer Deposit Tracking in NetSuite

Use Case: Effect of Discount on Customer Deposit

This question often comes to the mind of NetSuite users, as many enterprises offer discounts to their shoppers. Suppose that Ron has made an order of $500 and decides to make an advance payment. The brand offered an attractive discount of $100 on this product. In this case, Mark is liable to pay $400, and the customer deposit will also be made of the same amount. This use case suggests that the deposit syncs the effective payment made by the buyer and records the same. This helps reduce the seller’s efforts to manage the discounts separately.

Execute NetSuite Functionalities with Ease for Better Finances 

NetSuite is equipped with features that make business management much easier. Finance is a big trouble for any enterprise to manage among all other elements. Therefore, switching to NetSuite can be a good decision for utilizing features like Customer Deposit, Return Management, Tax Mapping, Multi-Currency Conversion, Accounting and many others. However, if you find it difficult as a e-commerce seller, leverage Shopify NetSuite integration by WebBee that helps utilize NetSuite functionalities with super ease execute for better finances and prepayment management. Say no to technical intricacies with the power of automation and the user-friendly interface of the Robust NetSuite integrator. 

Want to know more about NetSuite integrator features? Live Chat with us , and our technical experts will assist you with the best knowledge and solutions to help grow your business seamlessly. 

FAQ: Customer Deposit Queries Answered Here

Ques 1: Is a customer deposit created for a sales order only? 

Yes, it can be created for a sales order only, not for cash sales. 

Ques 2: What is the necessary condition to create a customer deposit? 

The location has to be specified before creating it. 

Ques 3: Can a customer deposit be used to knock off an invoice?

Yes, it can be used to apply against an invoice after the order is fulfilled.

Ques 4: Can multiple currencies be applied while applying a customer deposit to an invoice?  

Yes, NetSuite supports this functionality. 

Ques 5: How can a customer deposit be refunded? 

Businesses can refund the amount using the customer refund form in case of an extra payment or product return. 

Ques 6: Can customer deposit create a Payment Receipt? 

Follow this path: Customers > Accounts Receivable > Record Customer Deposits > List. Next, click on View.