Inventory · Daily operations · 7 min read

Handle customer and vendor returns

Take goods back from a customer, inspect them and restock or scrap them, raise the credit note, and send goods back to a vendor.

Before you begin

• You need inventory.return to change returns and inventory.view to see them.
• A customer return starts from a completed delivery; a vendor return starts from a completed receipt.
• For lot or serial products you must start from the original movement so the units are known.

Return goods from a customer

1. Open Inventory > Warehouse > Returns and click New return.
2. Set Type to From a customer.
3. Choose the Delivery it undoes. The customer is filled in from it.
4. Choose a Reason: Defective, Damaged, Wrong item, Not needed, Warranty, Late or Other.
5. Optionally enter the Customer claim reference and tick Under warranty.
6. In the lines, enter Return now for each product. You can return no more than was delivered less earlier returns.
7. Click Create, then Authorise.
8. When the goods arrive click Receive. They land in the Returns location and are not available to sell.
9. Open the inspection. For each received line choose a Condition (New, Opened, Damaged, Defective) and a Disposition (Restock, Refurbish, Repair, Vendor return, Scrap, Replacement, Hold). Click Save inspection.
10. Click Carry out. Restocked units are moved to the shelf by an internal transfer.
11. If the order was invoiced, click Raise credit note.

What happens next

The stock movement does not credit the customer by itself. Raise credit note creates a draft credit note for the returned lines in Finance, and a second click is refused: 'This return already has a credit note.' Damaged or defective goods cannot be restocked: the system tells you to repair, scrap or hold them.

Return goods to a vendor

1. Click New return and set Type to To a vendor.
2. Choose the Receipt it undoes and the Vendor.
3. Enter the quantity to return.
4. Click Authorise, then Ship.

Stock falls at the average cost and the return is Done.

Worked example

You delivered 3 units of TEST-001 at an average cost of AED 12.50 and the customer returns 1 as unused. After inspection (New, Restock) the unit goes back on the shelf, on hand rises by 1 and the draft credit note covers 1 unit.

Good to know

• Returning more than moved is refused, with a message showing how many can still be returned.
• A return can be cancelled before it is carried out.
• A done delivery or receipt cannot be cancelled; a return is the correct route.
• Drop-shipped goods are returned from the drop shipment itself. See Move stock between locations and warehouses.