Record Chargebacks in NetSuite

To record chargebacks in NetSuite via customer payments, voiding the payment will be the first task.

Here is how to do this:

1. Go to Setup > Accounting > Accounting Preferences.
2. Under the General tab, uncheck the Void Transactions Using Reversing Journals option.
3. Click on the Save button.

* The preference should be disabled to show the Void button in Customer Payments in Edit mode. Showing the Void button on Customer Payments while Void Transactions Using Reversing Journals = T is still an enhancement. (Enhancement 130375: Void Transactions Using Reversing Journals = T, Missing Void button on Customer Payments.)

4. Pull up the payment record in question.
5. Click on the Edit button.

* In Edit mode, you should be able to see the Void button.

6. Click on the Void button.

* This voids the payment, which also increases the customer's AR balance.

After this, you have two options can create a new invoice to record the additional charge placed by the bank for the chargeback.

A. Create an invoice via Transactions > Sales > Create Invoices  for the customer using an Other Charge item type to record the additional charge from the bank.

B. Create a journal via Transactions > Financial > Make Journal Entries using the following entries:


DR Accounts Receivable
CR Chargeback Account

Make sure to add the customer name under the AR account so that the customer's AR account is updated to reflect this charge.