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<@UEL688FFC> What we typically do is create a cred...
# accounting
m
@ThaFunk What we typically do is create a credit memo from the invoice and change the rate to zero (so that it doesn't put the stock back) and accept the warning that amount isn't equal to rate times quantity.
t
This may be a dumb question, but how does changing the "rate" to 0 keep it from putting stock back, I would have thought it was the qty you would 0
Its not important though I'm just wondering. Thanks
m
Sorry, I meant change the quantity to zero 🙃
t
Okay I'm such a n00b i would have changed rate lol 🙂
m
Rate would be the price difference you are crediting
t
Yes so 1.00 vs 1.25 we charged them etc
And this is the best process for overpayment
m
I'm not an accountant either so see if any chip in with other suggestions. But it seems to work as far as I can tell.
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t
A credit memo is really just keeping record of a credit the customer has, its not specifically triggering a refund to the customer correct ?
@michoel quick question, should I delete the rate as well, and just put in the amount I want credited back? I notice when I change qty of item to 0 it deletes the amount but keeps the rate
m
Correct, a refund is a separate transaction to a credit
I usually put the price difference in both rate and amount columns, but the more important one is amount.
t
Hey here is another option via SuiteAnswers ID: 34493 - have you ever tried it this way ? https://netsuite.custhelp.com/app/answers/detail/a_id/34493/kw/overcharge%20for%20invoice
m
That involves changing the original invoice which is not always possible and usually not advisable
t
Is that because it can change the costing ?
m
I don't think costing would make a difference here because that's usually on the fulfillment, not the invoice (unless the invoice is standalone), and also their advice is to add a discount line and not touch the original item line.
In general I believe it's best practice not to change invoices. It can lead to lots of confusion with customers having different versions of an invoice to what your system says. And once periods are closed etc. it's no longer possible
t
That makes sense, I didnt think about that part of it, what the customer may see. I think this is the best solution, this recommendation is actually tied to a future NetSuite enhancement, its still adding an 'other charge' line but using CM and removing all line items not to affect inventory. Just thought you'd like to see. ID: 35853 https://netsuite.custhelp.com/app/answers/detail/a_id/35853/kw/35853 It even has a video! lol
m
My gut feeling is it's better to tie the credit to the same item that you are crediting instead of using a generic "other charge" line. But then again I am not an accountant so maybe one can chime in
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k
It depends on desired effect
Using an unrelated item won't impact profitability reports for the source item. It also teaches people some potential work arounds that might not have desired impact. Using the same item at a 0 quantity because of overcharge seems safe. Using the same item because you short shipped it with a 0 quantity screws up quantity reporting. If you don't use revenue recognition, you can do a return authorization and then not receive it back into stock before doing the credit
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m
@KevinJ of Kansas for short shipments we put the quantity so it goes back into stock.
WRT your suggestion of using an RA, if the RA isn't received it doesn't seem to allow crediting. Unless you mean to receive but uncheck Restock? Wouldn't this mess up reporting on quantity purchased by customer?
k
You might have to have the preference for bill in advance of receipt turned on
And I wasn't suggesting your 0 qty answer doesn't work in a overpricing situation, just that I don't like that allowing quantity override could lead to people abusing.things
m
Yeah, we haven't enabled bill in advance of receipt
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