How to create a credit note - foundational

On the invoice view details page, you can create a new sales return by following these steps:

1. Select one or more product lines to return.
2. Click Actions, then select Create sales return.
   
3. Modify the sales return as you require, then click Ship out & invoice to create the sales return.

A new credit return order will be created based on your selection. You can find it on the sales orders page or the returns page. From there, you can edit its details, including adding or removing product lines.

Leave the credit return as unprocessed and update notes or user statuses to track its progress. For example, you could create a user status to indicate the return is with the customer or that items are awaiting pickup.

2) Return and replacement on the same order

From the sales orders page, enter a sales order like normally would. For credit notes, use a negative quantity.
For example, the customer returns one item and then admin can issue a replacement item on the same order. Once a credit note order is created, and when ready, click "Ship out & invoice" to finalise it.  Otherwise, if there is no replacement, then just have the returned item (with negative qty) in the order.


 

• Step by step:
  • Go to Sales menu > Sales orders
  • Click "New order"
  • Choose the customer's name
  • Enter a reference, for example: Replacement product
  • Enter the product that has been returned (see below for an example)
  • Enter a qty of negative 1, that is -1, this is to return the product into stock
  • Save the item
  • If a replacement item is required:
    • Add the replacement item with a qty of 1, this is to reduce the stock quantity
  • If required, add other items that relate to the order, for example:
    • Restocking fee
    • Labour
    • Or other products that the customer wants to purchase along with the replacement product
  • When ready, click "Ship out & invoice" like normal to finalise it.
  • Any differences in the order value, for example:
    • If the total order value is a negative number, this means you can either leave this as a credit in the customer's account, or need to make a bank refund to the customer
    • If the total order value is a positive number, then the customer needs to pay the difference
    • If the total order value is zero, then it evens out, nothing to refund or to pay

If inventory/stock is not involved in the return, use non-diminishing product SKUs in the return order.

For example: use a non-diminishing SKU like MISC, WARRANTY, RETURN, CREDIT or create a different SKU to reflect the type of credit.

After the credit note order is created, use the same "Ship out & invoice" process to finalise it and a credit note will be created.