In NetSuite, a Bill Credit is used to record a reduction or refund on a previously received vendor bill. Here’s how it works:
1. Create a Bill Credit:
- Navigation: Go to
Transactions > Payables > Enter Bill Credit. - Vendor Selection: Choose the vendor from whom you received the credit.
- Reference the Original Bill: If the Bill Credit is linked to an existing bill, you can reference that bill by selecting it. This automatically populates the details based on the original bill.
- Enter Credit Details: Fill in the details of the credit, such as the items or expenses being credited, quantities, and amounts.
- Save the Bill Credit: Once all details are entered, save the transaction.
2. Applying a Bill Credit to a Bill:
- Navigation: Go to
Transactions > Payables > Pay Bills. - Apply Credit: Select the vendor, and you’ll see the list of open bills. If there’s an unapplied Bill Credit for that vendor, it will appear under the “Credit” column. You can check the box next to the credit to apply it to the specific bill.
- Amount Applied: The amount of the Bill Credit will reduce the amount you owe to the vendor.
- Save the Payment: After applying the credit, you can proceed with paying any remaining balance or just saving the application of the credit.
3. Accounting Impact:
- Accounts Payable: The Bill Credit reduces the balance of Accounts Payable.
- Expense/Item Account: The Bill Credit also reduces the expense or item account initially charged on the original bill.
4. Reporting and Tracking:
- Vendor Balances: Bill Credits are reflected in the vendor’s balance, reducing the total amount payable.
- Expense Reports: The credit will also be visible in expense reports, showing the adjusted expenses after applying the credit.
Use Cases:
- Return of Goods: If you’ve returned items to a vendor and they issue a credit, you’ll use a Bill Credit to record this.
- Overbilling Correction: If a vendor has overbilled you, they might issue a credit for the overcharged amount, which you would record with a Bill Credit.
This process ensures that your payable accounts reflect the accurate amount owed to vendors, taking into account any credits issued.