Create a NetSuite Credit Memo from the paid Invoice or Return Authorization and process the refund under the PayPack subtab.

Note: The PayPack subtab will only appear if the Credit Memo or Return Authorization has a linked transaction. This is typically shown in the field labeled created from.

• Uses NetSuite's native refund workflow.
• When a refund is processed on the credit memo using the PayPack subtab, a customer refund is automatically generated and applied to the credit memo.
• Stripe refund id will be stored in the Customer Refund custom field STRIPE REFUND ID (PAYPACK).

Refund on the Credit Memo

Once a payment is processed against an Invoice, returning those funds requires a specific workflow to maintain accurate accounting records. Instead of altering the original closed Invoice, NetSuite uses a Credit Memo to adjust the customer’s balance.

Common use cases for this workflow include:

• Product Returns: The customer returns items after the invoice was paid and closed.

• Canceled Services: A portion of a prepaid service is canceled and needs to be refunded.

• Retroactive Discounts: A discount, credit, or dispute resolution is applied after the original payment was processed.

This section explains how to issue a refund directly from the Credit Memo, ensuring the money is routed back to the original payment method while automatically reversing the correct revenue and tax impacts in your books.

Watch how to process a refund in PayPack at the credit memo.

Refund on the Customer Deposit

When a customer pays upfront before an Invoice is generated, NetSuite records the payment as a Customer Deposit (a liability). Because there is no Invoice to credit or reverse, returning these unapplied funds requires refunding the Customer Deposit directly.

Common use cases for this workflow include:

• Canceled Sales Orders: The customer or your team cancels the entire order before it reaches the fulfillment or billing stage, requiring a full refund of their prepayment.

• Order Modifications: Items or services are removed from the Sales Order prior to invoicing, meaning the initial upfront deposit now exceeds the updated order total and a partial refund is needed.

• Accidental Overpayments: The customer deposited more funds than required to secure the Sales Order.

This section explains how to issue a refund directly from an unapplied Customer Deposit. Following this workflow ensures the funds are seamlessly routed back to the customer's original payment method while accurately clearing the deposit liability from your General Ledger.

Watch how to process a refund in PayPack at the Customer Deposit.

Refund on the Customer Payment

Sometimes a payment is successfully applied to an Invoice, but an error occurred with the payment transaction itself. In this scenario, you do not want to use a Credit Memo, as that would reduce the total amount the customer owes. Instead, you need to refund the Customer Payment directly to reverse the transaction and detach it from the original Invoice.

Common use cases for this workflow include:

• Wrong Payment Method: A customer was accidentally charged on the wrong credit card or bank account. The payment must be refunded so the Invoice can be reopened and charged to the correct payment method.

• Duplicate Payments: A customer or automated system accidentally paid the same Invoice twice, and the specific duplicate payment record needs to be reversed and returned.

• Payment Amount Errors: An incorrect amount was captured and applied, requiring a complete reversal of the payment so the transaction can be re-run for the proper amount.

This section explains how to issue a refund directly from the Customer Payment record. Following this workflow ensures the funds are returned to the original payment method, the erroneous payment is unapplied from the original Invoice (leaving it open and unpaid in NetSuite), and your team is clear to process the payment correctly.

Watch how to process a refund in PayPack at the Customer Payment.