The quick answer
To create a credit memo from an invoice in NetSuite, open the invoice and click Credit. Review the customer, copied items, quantities, and amounts. Check the application, click Save, then verify the credit memo number and applied or unapplied amount.
Start with the invoice you need to correct. You’ll review the copied details, choose how much to credit, and check that the credit is applied to the right invoice. Follow along with your own invoice; the screenshots use sample data and fictional person and operating-company names.
Before you start
Confirm the invoice and the reason for the credit. Know whether you’re crediting the whole invoice or only part of it. Your role needs permission to create credit memos, and your account may require a location, classifications, or approval.
This walkthrough creates a credit memo. If physical goods are coming back, check your return-authorization and receiving process as well; the credit record alone doesn’t document a warehouse return.
01. Open the source invoice
Open the saved invoice and check its number, customer, and total. Here, INV20 belongs to 1 Test company and has 100.00 due.
Click Credit. NetSuite opens a Credit Memo using information from the invoice. Check the source before moving forward so you don’t credit the wrong transaction.
02. Review the customer and credit details
Confirm the Customer, date, and any displayed or required subsidiary, posting-period, or location fields. The demonstration uses 1 Test company, Parent Company, and Test Location.
Review the memo as well. The recording carries test order into the credit; your memo should explain the credit clearly enough for someone else to understand it later.
03. Check the lines and application
Review the Items subtab. This example credits 1 Test Widget at 100.00, for a total of 100.00. For a partial credit, adjust the lines or quantities to match what you intend to credit.
Check the Apply information too. Confirm which invoice receives the credit and how much will remain unapplied. After saving, the demonstration shows Applied 100.00 and Unapplied 0.00.
04. Save and verify the credit memo
Click Save and wait for the saved record. The example finishes on CM14, with a total of 100.00, Fully Applied status, Applied 100.00, and Unapplied 0.00.
Check the application details for the intended invoice. Your saved credit may remain partly or fully unapplied if its application differs from this example.
Check the result
- Credit: CM14 is saved for the intended customer.
- Amount: the credited lines total 100.00.
- Application: 100.00 is applied and 0.00 remains unapplied; verify the target invoice.
The credit memo is recorded. If the customer should receive money back, handle the refund through the appropriate workflow; Fully Applied does not mean a cash refund was sent.
Common questions
Can I create a credit memo from an existing invoice?
Yes. Open the invoice and choose Credit, then review the populated credit memo before saving. You don’t need to create a new invoice first. The recording creates one only to set up the example.
Can I credit only part of an invoice?
Yes. Review and adjust the credited lines, quantities, and amounts to match the intended credit. Check the resulting total and application before saving so you don’t credit the full invoice by accident.
Is the credit automatically applied to the invoice?
Check rather than assume. Starting from an invoice can populate the application, but the saved record is what you should verify. Review Apply, the invoice reference, and the applied and unapplied amounts. This example ends Fully Applied.
Does a credit memo refund the customer?
A credit memo records a customer credit. It does not by itself prove that cash was refunded or that returned goods were received. Check the credit’s application, then use the appropriate refund or return workflow when needed.