Processing Sales Returns

Handling sales returns involves receiving returned goods from a customer, verifying the reason for return, inspecting the items, and issuing a credit note. Zudello helps manage this process and keep your records accurate.

Best practices

• Clearly define your return policy and communicate it to customers.
• Inspect returned goods thoroughly upon receipt to assess their condition.
• Process credit notes promptly once a return is approved.
• Update inventory levels accurately to reflect returned stock.
• Link the sales return/credit note back to the original sales order or invoice if possible for better tracking.

Processing a Sales Return

1. Receive Return Request/Goods: The process typically starts when a customer requests a return or when you physically receive returned goods.
2. Create Sales Return/Credit Note Document:
   • Navigate to the Sales module > Credit Notes submodule (or a dedicated Sales Returns submodule if available).
   • Create a new document. You might be able to create it directly or by referencing the original sales order/invoice.
   • Select the Customer.
3. Enter Return Details:
   • Fill in the header information, such as the Return Date, a Return Authorisation Number (if applicable), and reference to the original Sales Order/Invoice Number.
   • Add the line items being returned. Specify the Item Code/Description, Quantity Returned, and the Unit Price at which they were originally sold. Zudello might pull this information automatically if linked to the original sale.
   • Specify the Reason for Return for each line or for the overall return (e.g., Damaged, Incorrect Item, Change of Mind).
4. Verify and Inspect:
   • Match the physical returned goods against the return document.
   • Inspect the condition of the returned items. Adjust the credit amount or quantities if items are damaged and not eligible for a full refund, according to your policy.
5. Code/Enrich (If Applicable): Apply any necessary internal coding, like reason codes or links to quality control processes.
6. Approve the Return/Credit Note: Once verified, approve the sales return/credit note. This might involve an internal approval workflow depending on your configuration. The status might change (e.g., from Draft to Approved or Completed).
7. Issue Credit Note to Customer: Send the finalised credit note document to the customer. Zudello may have functionality to email it directly.
8. Update Inventory: Ensure your inventory records are updated to reflect the returned stock (e.g., adding items back to available stock if resalable, or moving them to quarantine/damaged stock). This might be an automated step if integrated with an inventory system.
9. Financial System Update: Ensure the credit note is synced or manually entered into your accounting system to adjust accounts receivable and potentially sales revenue/cost of goods sold.

Properly managing sales returns is crucial for customer satisfaction and accurate financial and inventory records.

See also: Process Sales Orders

Need help?

If you encounter problems processing returns or issuing credit notes, contact your organisation administrator or Zudello support.