Apply existing customer and vendor credits in NetSuite

Apply existing NetSuite customer credits to invoices and vendor credits to bills. Review partial applications and verify the unused credit balances.

The quick answer

Open the existing credit, choose Edit, and use Items → Apply to select the invoice or bill and the amount to apply. Save, then inspect the saved application. Any unused credit remains available.

The screenshots use sample data and fictional person and operating-company names.

Before you start

You need permission to edit the credit and view its eligible open transactions. Each credit and target must belong to the same customer or vendor, with compatible currency, subsidiary, and A/R or A/P account. Complete required approvals first. These are two separate examples; neither records cash or creates a refund.

01. Check the customer invoice

Open the unpaid invoice and check its customer and amount due. Here, INV-9254 belongs to Harbor Devices and has $420.00 due. Open existing credit memo CM-2184 for that same customer and confirm its $560.00 original total and that it has no prior applications.

The starting invoice has $420.00 due for Harbor Devices.

02. Select the invoice on the credit

On CM-2184, click Edit and open Items → Apply. Check Apply for INV-9254 and enter 420.00 in Payment. Leave other invoices unselected. The $560.00 credit covers this invoice while leaving $140.00 unused.

Select INV-9254 and apply $420.00 from the existing credit.

03. Check the saved customer application

Click Save. On the saved credit memo, reopen Items → Apply and find INV-9254 with a $420.00 application. The original total stays $560.00; it is the application that uses $420.00 of that credit.

The saved credit lists a $420.00 application to INV-9254.

04. Review the vendor bill and credit

Open BILL-6831 for Juniper Components. Confirm the approved bill is open with $860.00 outstanding. Then open vendor credit VC-1942. Its original amount and starting Unapplied amount are both $1,900.00.

The existing vendor credit has $1,900.00 available before application.

05. Apply the vendor credit

Click Edit on VC-1942 and open Items → Apply. Check Apply for BILL-6831 and enter 860.00 in Payment. Leave other bills unselected, then save.

Apply $860.00 to BILL-6831 and leave other bills unselected.

06. Verify the saved vendor application

On the saved vendor credit, open Apply and find the $860.00 application to BILL-6831. Subtract that from the original $1,900.00: $1,040.00 remains. Check Unapplied too when the form exposes it.

The saved bill-credit application is $860.00, leaving $1,040.00 unused.

Check the result

  1. Customer credit: $560.00 − $420.00 = $140.00 unused.
  2. Vendor credit: $1,900.00 − $860.00 = $1,040.00 unused.
  3. Both applications appear on saved credits against the intended transactions.

Common questions

How do I apply an existing customer credit memo to an invoice?

Edit the credit memo, open Items > Apply, select the eligible invoice, and enter the amount in Payment. Save the credit memo, then reopen its Apply sublist to confirm the saved application. The customer, currency, subsidiary, and account context must be compatible.

Can I apply only part of a customer or vendor credit?

Yes. Enter only the amount needed for the selected invoice or bill. The unused portion remains available; for example, applying $420 from a $560 credit leaves $140.

How do I apply a vendor credit to an outstanding bill?

Edit the vendor credit, open Items > Apply, select the eligible open bill, and enter the amount in Payment. Save the credit, then inspect the saved Apply sublist. The vendor, currency, subsidiary, account context, bill status, and required approvals must permit the application.

How can I verify which transaction received the credit?

Open the saved credit memo or vendor credit and review Items > Apply. The selected invoice or bill and applied amount should appear there after saving. Selecting Apply on an unsaved form is not confirmation. Applying credit does not create a refund or cash payment.

Supporting sources

Oracle NetSuite: Applying a Vendor Credit.