Writing Off Customer Overpayments

You can make journal entries to write off small amounts related to customer overpayments.


You may prefer to apply a customer overpayment against an outstanding invoice.

To write off small amounts from customer overpayment:

  1. Go to Transactions > Financial > Make Journal Entries.

  2. In the Primary Information section:

    1. In the Entry No. field, accept the default or enter a different number.

      If journal entries are assigned autogenerated numbers in your account, you cannot change the defaults unless the Allow Override box is checked for Journal. Go to Setup > Company > Auto-Generated Numbers > Document Numbers subtab. For more information, see Set Auto-Generated Numbers.

    2. If you use NetSuite OneWorld, select a subsidiary to associate with this journal entry.

      The journal posts to this subsidiary and only entities associated with the subsidiary can view the entry.

      You cannot associate a regular journal entry with more than one subsidiary. For journal entries between two subsidiaries, you must make an intercompany journal entry. For more information, see Journal Entries in OneWorld.

    3. If the Multiple Currencies feature is enabled, review the value in the Currency and Exchange Rate fields and edit as necessary.

      If you use NetSuite OneWorld, by default the Currency field displays the base currency of the subsidiary selected in the Subsidiary field.

    4. If you have journal approval permission, check the Approved box to approve your journal entry. If you do not check this box, this entry does not post until it is approved.


      The Approved box displays only if the Require Approvals on Journal Entries accounting preference is enabled at Setup > Accounting > Accounting Preferences > General subtab. See Require Approvals on Journal Entries Preference.

      The Approved box does not display if you have enabled the Journal Entries approval routing accounting preference. This preference enables you to use SuiteFlow to create a custom journal entry approval routing workflow. See Use Journal Entry Approval Routing.

    5. Accept or enter a date in the Date field.

    6. If you use fiscal periods, you see a Posting Period field.

      The posting period is determined when the journal entry is approved. When you approve a journal entry, you can select a different value than the one initially displayed. You cannot select a closed period. You may be able to select an open and locked period if your role includes the Override Period Restrictions permission.

  3. On the Lines subtab:

    1. In the Account field, enter or select your Accounts Receivable account.

    2. In the Debit field, enter the amount of the overpayment from the invoice.

    3. In the Name field, select the name of the customer with whom this overpayment is associated.

    4. Enter other information on this line item as necessary.

    5. Click Add.


      When line details are similar, click Copy Previous and then make modifications as required.

    6. In the Account field, enter or select your Miscellaneous Income account or your preferred income account.

    7. In the Credit field, enter the amount of the overpayment from the invoice.

      Note that this amount must match the amount you entered on the previous line.

    8. Enter other information about this line item as necessary.

    9. Click Add.

  4. Verify that the Out of Balance By Debit and Credit fields are empty.

    You cannot save a journal entry that is out of balance.

  5. Verify that the amounts entered in the Debit and Credit fields are the exact amount of the invoice.

  6. Click Save.

The final results are:

To apply the journal entry you created to the overpayment, see Applying a Journal Entry to an Overpayment.

Related Topics

Journal Entries
Journal Entries Overview
Journal Entry Preferences
Making Journal Entries
Journal Entry Approval Overview
Reversing Journal Entries
Viewing Journal Entries
Printing Journal Entries
Importing a Journal Entry
Journal Entries in OneWorld
Bad Debt Overview
Expense Allocation Overview
Period End Journal Entries
Balancing Segments and Journals

General Notices