Customer returns and credit notes

When a customer sends goods back (for example damaged cartons) or you agree to reduce a price, you make a Credit Note. In OLY ERP a credit note is a Sales Invoice with Is Return ticked. If the goods physically come back, you also make a return Delivery Note so stock goes up again.

Before you start

• The original submitted Sales Invoice and, if goods come back, the original Delivery Note.
• Agree the return quantity and reason with the customer. Your company may need a manager to approve returns. Your consultant sets up any approval steps.

Step 1: Bring the goods back into stock

1. Open the original submitted Delivery Note.
2. Click Create > Sales Return. A new delivery note opens with Is Return ticked and negative quantities.
3. Change the quantities to what actually came back. Example: 2 cartons of "Corn snack 50 g, cheese" show as -2.
4. Check the warehouse. If the goods are damaged, your store may receive them into a separate warehouse, for example "Damaged - EF".
5. Click Save, then Submit. Stock goes up by 2 cartons.

Step 2: Make the credit note

1. Open the original submitted Sales Invoice.
2. Click Create > Return / Credit Note. A new sales invoice opens with Is Return ticked and the original invoice in Return Against.
3. Remove the items that were not returned and set the returned quantities, for example -2 cartons.
4. Check that the "VAT 15%" template is still selected. Example: 2 cartons at 1,000 ETB = -2,000 ETB, VAT -300 ETB, total -2,300 ETB.
5. Click Save, then Submit.

The customer's balance is reduced by 2,300 ETB. If the original invoice is still unpaid, its outstanding amount goes down by the same amount.

Price reduction without goods returning

Make the credit note from the invoice as in Step 2, but skip Step 1. Keep the quantity and set only the amount you are giving back. Ask your accountant how your company records price reductions.

Refunding money

If the customer already paid and wants cash back, open the credit note and click Create > Payment. The Payment Entry has Payment Type "Pay". Enter the refund reference and date.

Good to know

• Always create returns from the original document. This keeps the link for VAT and for the customer's history.
• Do not cancel an old invoice to handle a return. Cancelling changes past VAT figures.
• Credit notes appear in the Sales Register with negative amounts.

Related

• Create a sales invoice with VAT
• Deliver goods with a delivery note
• VAT: what you charged and what you paid