Credit the Customer
The last step of a return is a credit note, generated for you from what was actually received.
From that point it behaves like any other credit: apply it to an open invoice, or refund it.
Generate the credit
Open the received return
Choose Create Credit Note.
Check the lines
They come from what was received, not from what was authorised. Damaged units are credited too unless you decide otherwise.
Check the tax
Credited in proportion to the value, using the rates on the original invoice.
Issue it
The credit is now open and can be applied or refunded.
Apply or refund
Applying offsets the credit against an open invoice. Refunding sends money back. If the original invoice was already paid, there is nothing to offset, so a refund is usually what the customer is expecting.
| Original invoice | Usual outcome |
|---|---|
| Still unpaid | Apply the credit to it. Their balance drops. |
| Paid in full | Refund, or hold the credit against their next order. |
| Partly paid | Apply what fits, refund or hold the rest. |
| Customer is leaving | Refund. Do not leave a credit nobody will use. |
Restocking charges
If you charge for restocking, credit the full value and raise a separate invoice for the fee. Reducing the credit instead hides the charge inside a correction, which the customer will query and you will struggle to explain.