Processing Red-Letter Invoices

Note:

This feature requires the China Localization SuiteApp

The following topics describe processing Red-Letter Invoices in China Localization:

• Overview

• Processing a Red-Letter Invoice Through Credit Memo

Overview

Red-Letter Invoices are reversal of sales in China, where the transaction is entered as a negative value in the China Golden Tax System. NetSuite China Localization handles this through customer credit memos and cash refunds, where you can also store the government-issued Information Sheet Number. This number is then required in generating Red-Letter Invoices in the Golden Tax System.

Processing a Red-Letter Invoice Through Credit Memo

The following describes the steps to process a Red-letter Invoice through credit memo.

To process a Red-Letter Invoice via Credit Memo

1. Go to Transactions > Customers > Issue Credit Memo.

2. Complete the Credit Memo form. For more information, see Issuing a Customer Credit Memo.

3. In the China VAT Subtab, enter a 16-digit value in the Information Sheet Number field. This number should correspond to the Red Letter Information Sheet Number issued by the government. This field is required for Special VAT Invoices.

4. (Optional) In the China VAT Invoice Type dropdown, select Special VAT Invoice or Common VAT Invoice. This is automatically selected according to the China Taxpayer Type in the customer's record, but can be changed as needed. For more information, see Setting China VAT Taxpayer Types.

5. (Optional) In the VAT Split Rule field, select Split Rate or Split Quantity. For more information, see Override VAT Split Rule.

6. Click Save.

Related Topics

• China Help Topics
• China Terminology
• Setting Up China Localization
• Override VAT Invoice Type
• Override China Cash Flow Item
• Generating China Voucher Printing Report
• Generating China VAT Transactions
• Importing VAT Transactions from the China Golden Tax System
• Financial Reports for China

General Notices