NetSuite Reversal Behavior for Invoices, Credits, and Payments

Reversing an invoice, credit, payment, or journal entry in Ordway triggers a corresponding action in NetSuite. What happens depends on the transaction type and whether the original transaction falls in an open or closed NetSuite financial period. This article describes that behavior, so you know what to expect in NetSuite after a reversal, and what to check when a sync fails.

Contents

• Positive Invoice Reversals
• Negative Invoice Reversals
• Credit Reversals
• Payment Reversals
• Journal Entry Handling
• Applying and Unapplying Transactions in Closed Periods
• NetSuite Field Reference
• Limitations
• Related Topics

Positive Invoice Reversals

A positive invoice represents a standard customer charge. When you reverse one, Ordway:

1. Edits the invoice in NetSuite.
2. Creates a credit memo with a reversal date in NetSuite.
3. Automatically applies the credit memo to the invoice to close it.

The credit memo's NetSuite ID is stored in the netsuite_reversal_id field in Ordway.

This behavior is the same whether the original invoice falls in an open or a closed financial period.

Important: To avoid closed-period sync issues, allow non-GL changes when closing a period in NetSuite.

Negative Invoice Reversals

A negative invoice syncs to NetSuite as a credit memo. When you reverse one, Ordway:

1. Creates an invoice with a reversal date in NetSuite.
2. Updates the credit memo and automatically applies it to the new invoice to close it.

The invoice's NetSuite ID is stored in the netsuite_reversal_id field in Ordway.

Credit Reversals

Credits in Ordway sync to NetSuite as credit memos. When you reverse a credit, Ordway:

1. Creates an invoice with a reversal date in NetSuite.
2. Updates the credit memo and automatically applies it to the new invoice to close it.

The invoice's NetSuite ID is stored in the netsuite_reversal_id field in Ordway.

Payment Reversals

Pending Payment Reversals

Pending payments typically represent electronic payments awaiting settlement confirmation.

• When created: A customer payment record is created in NetSuite, and its ID is stored in netsuite_id.
• If the payment later fails: Ordway unapplies the payment from its invoices, then:
  • If the financial period is open, Ordway deletes the payment.
  • If the financial period is closed, Ordway creates a customer refund dated with the current date.
• If the payment succeeds: Ordway updates the existing NetSuite payment record.

Processed Payment Reversals

• Open financial period: Ordway creates a customer refund in NetSuite.
• Closed financial period: Ordway creates a customer refund in the current open period. Invoices in closed periods can't be unapplied automatically, so manual correction in NetSuite may be required.

Journal Entry Handling

• Creating a journal entry syncs normally to NetSuite.
• Editing a journal entry syncs normally; closed-period edits may need additional handling.
• Deleting a journal entry:
  • Ordway deletes it, unless the entry has been deposited or belongs to a closed period.
  • If Create Reverse JE for Closed Period is enabled, Ordway creates a reversal journal entry dated with the current date instead of deleting the original.

Applying and Unapplying Transactions in Closed Periods

When you apply or unapply a credit or payment against an invoice that spans closed periods, NetSuite may restrict the change.

• Transactions where both sides are in an open period continue to sync successfully.
• If both the invoice and the credit or payment belong to closed periods, the sync may fail and require manual correction in NetSuite.

NetSuite Field Reference

Limitations

• Closed-period apply or unapply operations may fail and require manual correction in NetSuite.
• Applying negative invoices or credits may generate $0 payment records that don't sync to NetSuite.
• Closed-period invoice application may require manual reconciliation in NetSuite.

Related Topics

• NetSuite Integration Guide
• NetSuite Line-Level Tax Integration