What Is a Credit Memo in NetSuite?

A Credit Memo in NetSuite is used to lower the amount a customer owes your business. It serves as a way to reverse charges that had been previously invoiced. This could be returns, billing errors or negotiated adjustments.

When To Use A Credit Memo

• Post Invoice adjustments: If a customer was overcharged or needs to cancel part of an invoice, a credit memo allows you to adjust the balance without deleting the original invoice.
• After Payment: If the customer has already paid, a credit memo can be issued and applied to any of their open or future invoices.

Why This matters

Credit memos provide accurate customer balances and financial records while giving your business flexibility to handle changes in billing.

Conclusion

Credit memos are a main part of managing customer relationships and maintaining accurate financial records in NetSuite. Whether it’s missing a refund, correcting an overcharge, or applying a credit to future invoices. Credit memos provide flexibility to handle billing with ease.