ANS-0607 · SALES ORDER PROCESSING
How to Prevent Double Billing for Shipping on NetSuite Third-Party Orders
Configure NetSuite shipping preferences to ensure accurate billing when using a customer's carrier account for third-party shipping.
Short answer
To prevent double billing for shipping on third-party orders in NetSuite, navigate to Setup > Accounting > Shipping > Preferences > Third Party Billing. Check the "Do Not Charge on Shipping on Third Party Billing Orders" box. This ensures that shipping charges are billed directly to the customer's carrier account without appearing on the NetSuite invoice, avoiding duplicate charges.
Scenario
When NetSuite is configured for third-party billing, the system's default behavior automatically bills shipping charges to the customer's carrier account. Simultaneously, these same shipping charges are added to the customer's invoice within NetSuite, resulting in unintended double billing. This can lead to customer confusion and billing discrepancies.
Solution
To prevent NetSuite from double billing customers for third-party shipping charges, adjust the shipping preferences:
Navigate to Setup > Accounting > Shipping > Preferences.
Select the Third Party Billing subtab.
Check the box labeled "Do Not Charge on Shipping on Third Party Billing Orders".This configuration ensures that shipping charges are billed directly to the customer's carrier account and are not displayed on the NetSuite invoice, thereby preventing duplicate charges.Alternatively, if the preference cannot be enabled, a discount equivalent to the shipping amount must be manually applied to the invoice.It is important to note that shipping charges billed directly to the customer's carrier account do not appear in NetSuite's transaction records.
Expert NetSuite Support
Need help with this NetSuite issue?
Sales Order Processing consulting and configuration support