Dear Gihan,
The 1/N should be there. The most clear (imho) rederivation of these equations is in Farrow et al. Acta A 2009:
I think it is a good use of time to go through that.
Regarding the xPDFsuite/PDFgetX3 issue, the algorithm used there only gives a PDF up to an arbitrary unknown scale factor. This is often a number close to 1, but in some circumstances can be wildly different. However, it was shown in the PDFgetX3 paper (10.1107/S0021889813005190) that the G(r) was not affected by the scale-factor offset, so you should rescale it for comparison with G(r)/S(Q) obtained in other ways and you will find that after rescaling it will be of very high quality.
People who want to determine G(r) on an absolute scale, for example to extract a number of nearest neighbors in an amorphous or liquid material, have to do all the corrections correctly and can't use getX3, this is true. However, I think that there is some confusion in the community, that if you use PDFgetX2 or one of the other programs (gudrun/gudrunX) that make all the physics based corrections to the data explicitly, you will get a correct scale factor. However, this is only true if you know all the different experimental factors in your setup exactly. In general we often don't know the powder packing density and the amount of Compton and Fluorescence scattering, the beam intensity weighted illuminated sample volume and so on. We are often only guessing at these parameters and so only getting an approximate scale factor even from these programs. One has to go to a great deal of trouble to get all this right, and there are practitioners who are doing that but they are mostly not using the RAPDF setup with large area 2D detectors. If you are not doing all those things carefully, you may as well just use PDFgetX3 and not worry about the scale factor. Be careful about drawing scientific conclusions from scale factors!
S