Stripe credit notes and NetSuite credit memos

The Stripe Connector for NetSuite supports credit note automation to handle out-of-band payments, refunds, discounts, revenue recognition, and to decrease invoice amounts. The automation process also allows coupons, taxes, and custom information on the credit memo in NetSuite. You can learn more about how to issue credit notes in the Dashboard or using the API.

Credit notes for open invoices

After you finalize a Stripe invoice, you can’t edit the amount due. If you need to change the amount after invoice finalization, you can use a credit note. Credit notes are documents that decrease the amount of an open or paid invoice, but don’t void or replace the original invoice.

When you apply a credit note to an open invoice, the connector creates a credit memo in NetSuite and applies it to the invoice after it’s paid. The final invoice in NetSuite includes the adjusted amount due. The connector waits to apply the credit memo to prevent an irreconcilable state (voided invoice and credit note) in Stripe, which NetSuite doesn’t support.

Credit notes for paid invoices

When you apply a credit note to a paid invoice, the following occurs depending on the action. You can apply credit notes in multiple ways simultaneously, and the connector reflects the applications in NetSuite.

Out-of-band payments

Out-of-band refunds can occur if your customer pays an invoice outside of Stripe (for example, a check or cash) and then receives a credit note. The connector creates an unapplied credit memo in NetSuite that you can manually apply to a customer refund. The credit memo indicates that the credit represents an out-of-band payment. This allows you to create queries to identify and resolve these types of credit memos.

Customer balance credit notes

If you issue a credit note for an invoice that has a credit balance applied to it, you might see funds credited to a customer’s credit balance instead of their original payment method.

Credit notes for previous transactions

If you have a history of Stripe transactions that you want to exclude from NetSuite, your implementation partner can configure a start date for records to sync on your account. The connector won’t sync any records before this date, including credit notes, payments, refunds, chargebacks, invoices, or payouts.

If you need to issue a credit note for a transaction created before the record sync start date, you can do so manually:

1. Create the credit note in Stripe.
2. Manually create the credit memo in NetSuite and apply it to the same transaction, invoice, or refund.
3. Manually reconcile the refund to the bank deposit. During the reconciliation process, the connector automatically skips the refund with the attached credit note.

Alternatively, you can post the credit notes to a single income account:

1. Create the credit note in Stripe.
2. The connector creates an entry on the deposit that represents the refund attached to the credit note. This entry isn’t tied to the original invoice, and the credit memo isn’t created.

Credit notes and taxes

If you calculate tax and use credit notes, you must use the following connector representation method: Taxes as a separate line item. Representing taxes on every line item isn’t supported because of limitations in NetSuite that prevent setting the tax rate on credit memo line items.

Data synced from credit notes to credit memos

The connector syncs credit notes to NetSuite with the credit note ID, creation date, currency, and includes any notes in the memo field. The connector uses the NetSuite customer that’s associated with the Stripe customer to create the credit memo. Any manual changes to the NetSuite customer can cause the credit memo to fail.

Invoice line items

The connector maps invoice line items as follows:

• Product price

  • If included on a credit note line item and linked to a NetSuite item, the connector uses that item on the credit memo.
  • If the product price isn’t linked to a NetSuite item, the connector creates an item for the price or uses the generic line item called Stripe Unallocated Invoice Item.

• Description

  • If present on the credit note line item, the connector adds it to the credit memo line item description.
  • If the description is empty, the connector uses the invoice line item description.

• Quantity: The connector maps the quantity, start date, and end date for revenue recognition calculations.

• Amount: The connector syncs the amount specified on the line item.

• Discounts: The connector syncs any discounts specified on the line item.

For UK businesses that use the gross amount in NetSuite, the connector uses that field for the credit memo. If you don’t use the gross amount, the connector uses the amount field.

Custom line items

You can add a custom line to a credit note that isn’t associated with a specific plan or item. The connector creates an item called Stripe Custom Credit Note Line Item and maps the custom line to this NetSuite item. The description and amount map to the NetSuite credit memo line. The connector can’t map metadata or custom fields.

No line items

You can create a credit note without line items. If the amount is less than the original invoice total, the connector uses a global credit note item.

Invoice line items with revenue recognition

The NetSuite revenue recognition engine can use the information contained in the credit memo to calculate revenue recognition. If associated with an invoice line item, the connector adds the start date and end date from the invoice to the credit memo.