Manage and track tax only refunds from Amazon

When the NetSuite Settlement Transaction to NetSuite Refund Add flow runs, the Integration App accesses the open invoice in NetSuite for every individual settlement transaction record associated with TRANSACTION TYPE > Refund and attempts to create a Credit Memo and Customer Refund for these transactions.

If you have to refund just the tax amount to your buyer on Amazon Seller Central, this article is for you. In such a scenario, the Amazon settlement report contains a refund for the tax amount with no principal amount details associated with it. In this case, when the Integration App tries to create a refund in NetSuite, an error is generated as NetSuite always requires a line item against an order for which a refund is being created.

To work around this use case within NetSuite, the Advanced Settings > NetSuite item to track tax only refunds from Amazon field in the Settlement section allows you to import tax only refunds from Amazon into NetSuite. Once you select a default item of your choice in this field, the Integration App identifies the item within NetSuite and creates a credit memo against this item as a line item. It’s recommended you create a Non-Inventory item (Sale/Resale) for this purpose. The tax amount is reflected in the Amount field against the line item on the credit memo record and the tax amount is set to zero. This is done as NetSuite requires a positive subtotal for all the line items on the transaction record

Note: The internal ID of a Non-Inventory item provided by you has used for all tax-only refunds in the settlement report from Amazon.

Once you select the internal ID of an item in the NetSuite item to track tax only refunds from Amazon field and run the Amazon Settlement Report to NetSuite Add integration flow, the Integration App process all the TRANSACTION TYPE > Refund records within the settlement report using the NetSuite Settlement Transaction to NetSuite Refund Add flow.

This entire process creates a Celigo Amazon Settlement Transaction record of type refund in NetSuite and applies for customer refund against this record. Without this field, an error will be generated when you try to process a tax-only refund record from the Amazon settlement report.

If you open the invoice associated with this refund, you will see that item associated with the order is different from the one listed on the credit memo.

Invoice:

Inside the Invoice record, you can find the actual item for which the order has been placed.

Credit Memo

Within the Credit Memo record you can find the following changes from the standard process:

1. Line Item records get created for the item you had selected in the NetSuite item to track tax only refunds from Amazon field. The original item for which the order was placed is removed from the credit memo.
2. The quantity associated with the item is always listed as Zero because Amazon Settlement Reports doesn’t contain the quantity of the item.
3. Tax only refund amount from the settlement report is credited in Amount field of the line item record within the credit memo.