Handling Returns and Credit Notes

Handling Returns and Credit Notes

Overview

This article gives you an overview of handling returns in iVendNext, including credit notes, inventory updates, and refund options.



1. When to Issue a Credit Note

Use credit notes for:
✔ Damaged/defective items
✔ Wrong products delivered
✔ Customer dissatisfaction (within policy)
✔ Partial or full order cancellations


Policy Tip: Display return rules at checkout to reduce disputes (e.g., "7-day returns with receipt").




2. Step-by-Step Return Process

A. Locate the Original Invoice

  1. Open Sales Invoice List View screen

  2. Locate the desired Sales Invoice

  3. Search by:

    • Invoice ID

    • Customer Name

    • Date range


B. Initiate Return

  1. Select the invoice > Click Return.

  2. The system auto-populates items with negative quantities.


C. Adjust Return Details

  • Partial return: Edit quantities (e.g., -1 of 2 purchased).

  • Restocking fee: Manually deducted from refund (if applicable).

  • Reason codes: Select from dropdown ("Defective," "Wrong Size").


D. Process Refund

Method

Steps

Original Payment

Auto-refund to card/cash used.

Alternate Method

Issue store credit/gift card.


Note: Cash refunds should require manager approval.


3. Inventory and Accounting Impact

A. Stock Reversal

Returned items are automatically added back to warehouse inventory.


B. Accounting Entries

For a $50 return (original $40 item + $10 tax):


Account

Debit ($)

Credit ($)

Sales Returns

40

–

Tax Payable

10

–

Customer Account

–

50


Audit Trail: Credit notes reference the original invoice for reconciliation.



4. Key Features for Efficient Returns

A. Barcode Scanning

  • Scan items from returns to auto-match with original purchases.


B. Email Receipts

  • Send credit note copies to customers for records.



5. Troubleshooting Returns

Here’s a quick look at some common issues you might run into.


Issue

Solution

Original invoice not found

Check if consolidated in a Closing Voucher.

Refund method disabled

Enable in POS Profile > Return Settings.

Inventory not updating

Verify warehouse permissions.



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