You can apply a credit memo to decrease the amount a customer owes you. When you apply a credit memo against an open invoice or cash sale, the amount of the credit is deducted from the total amount due.
You can apply a credit memo in the following ways:
- Apply a Credit Memo on the Credit Transaction
- Apply a Credit Memo on a Customer Payment
- Apply a Credit Memo on an Open Invoice
Apply a Credit Memo on the Credit Transaction
- Go to Transactions > Customers > Issue Credit Memos > List.
- Click Edit next to the memo you want to apply.
- On the Items subtab, check the Auto Apply box next to the Unapplied field if you want NetSuite to apply the credit amount to the oldest invoices or cash sales due.
- Click the Apply subtab to apply the credit toward a specific invoice or cash sale.
- Check the Apply box next to the invoices or cash sales you want the credit applied to.
- If you use the Multiple Currencies feature, only invoices or cash sales in the currency of the memo are shown on the Apply subtab.
- Click Save.
now, when you include the credited invoice or cash sale on a customer payment, the balance due reflects the credit amount.
You can also apply credit memos when you enter a customer payment.
When you enter a customer payment, you can also apply open credit memos for that customer. This is useful when a customer remits a payment amount that is based on both invoices and credits to their account.
For example, your customer ACME Inc. makes a monthly payment based on their statement. This month, their statement shows invoice #888 for $100 and credit memo #999 issued for $25. ACME Inc. remits a $75 payment. You can create one transaction that applies both the $25 credit memo and the $75 payment to invoice #888.
Apply a Credit Memo on a Customer Payment
- Go to Transactions > Customers > Accept Customer Payments > List.
- Click Edit next to the payment where you want to apply the credit.
- To create a new payment click New Transaction.
- Fill in the necessary information for this payment. On the Apply subtab, click the Credits subtab.
- Check the box in the Apply column next to each credit memo you want to apply.
- Clear the box in the Apply column next to each credit memo you are not applying.
- Click Mark All to apply all existing credits.
- Click the Invoices subtab to view the invoices being credited. You can change the bills that credits are applied to by:
- checking the box in the Apply column next to each invoice you are applying credit to.
- clearing the box in the Apply column next to each invoice you are not applying credit to.
- As credits are applied, you can see the amounts change in the To Apply, Applied, and Unapplied amounts in the header.
- Click Save.
Apply a Credit Memo on an Open Invoice
- Go to Transactions > Sales > Create Invoices > List.
- Click View next to the invoice you want to credit.
- Click Credit.
- Fill in the necessary information for the Credit Memo.
After you have applied a credit memo, you can review how it was applied in the following ways:
- From a Credit – Go to Transactions > Customers > Issue Credit Memos > List > List. On the Credit memos page, click View next to the credit. The Apply subtab on the credit memo shows which bills were credited.
- From a Payment – Go to Transactions > Customers > Accept Customer Payments > List. On the Payments page, click View next to the payment. The Credits Applied subtab on the payment shows which credits were applied.
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