How To Void an Invoice in NetSuite

Ron Danenberg03:03

In this tutorial, learn how to void an invoice in NetSuite by issuing a credit memo, along with the reasons and methods for doing so.

Steps to Void an Invoice

📂 Navigate to the Invoice:

  • Identify the invoice you need to void. For example, an invoice with a total of $1,773.

💳 Issue a Credit Memo:

  • Click on the “Credit” button in the top left corner.
  • This will create a credit memo with the same total amount and line items as the original invoice.

Reasons for Using a Credit Memo Instead of Voiding

  1. Accounting Accuracy:
    • Ensures financial records reflect actual transactions.
  2. Reconciliation:
    • Helps in matching credit memos with corresponding invoices for easier account reconciliation.
  3. Compliance:
    • Maintains adherence to accounting standards and practices.
  4. Audit Trail:
    • Provides a clear audit trail for voided transactions.

Finalizing the Credit Memo

💾 Save the Credit Memo:

  • Ensure the posting period matches the invoice.
  • Click “Save” to process the credit memo.

Handling Overpayments

💲 Managing Overpayments:

  • If the invoice has been paid in full or partially, issuing a credit memo may result in an excess payment.
  • There are two ways to manage this overpayment:
    1. Issue a Refund: Refund the overpaid amount to the customer.
    2. Credit Balance: Leave the amount as a credit balance in the customer’s account for future use.

📧 Notifying Customers:

  • It’s important to notify customers about the credit memo and any excess payments. This can be done automatically via email, SMS, or team tasks if you use Kolleno.

Final Thoughts

Using a credit memo in NetSuite instead of voiding an invoice ensures accuracy, compliance, and provides a clear audit trail. For more efficient customer communication and credit management, consider using Kolleno to automate notifications.

That’s it for today! 👋

Take a tour of Kolleno AR platform now