How To Void an Invoice in NetSuite

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! 👋