Can NetSuite Rebill a Customer for an Expense Not Yet Billed by a Vendor?

NetSuite's rebillable expense functionality is predicated on the principle of transferring a *known* accounting impact from a vendor bill to a customer. Consequently, it is not possible to directly rebill a customer for an expense that has not yet been billed by the vendor. The system requires an existing vendor bill to initiate the rebilling process. The core concept is to transfer a known accounting impact to the customer.

While alternatives like maintaining an informational link with a custom field at the line or header level can be a good practice, it is crucial to understand that such a link is purely informational and does not hold accounting value. The cost incurred by the business remains independent of the income generated from the customer; effective business management involves navigating this independence to achieve profitability.

The decision to use the rebillable process is fundamentally a business decision concerning customer-facing behavior or contractual agreements. Businesses must navigate the challenge of managing their cash flow and customer expectations. This involves making a strategic choice between two primary approaches:

1. Charging the customer based on the price stated on the purchase order, accepting the risk that the vendor may ultimately bill a different amount.

2. Delaying invoicing the customer until the vendor has confirmed the final bill amount, which may impact cash flow.