During a Sales Return event, the stock and accounting adjustments can be managed in various ways. Let’s explore the stock and accounts posting that would occur based on the Sales Return adjustment.

Return Without Payment

If a customer requests a return before completing the payment process, you can proceed as follows:

1. Cancel the Sales Invoice.
2. Generate a Sales Return against the corresponding Delivery Note.

If your legal regulations prohibit the cancellation of the Sales Invoice, you also have the option to create a Credit Note against the Sales Invoice.

Paid Sales Invoice – Adjustment via Credit Note

Here the customer has already purchased an item from you, and both the Sales Invoice has been submitted and payment has been made.

1. Generate a Credit Note against the corresponding Sales Invoice.
2. In the Sales Invoice, ensure to check the “Is Paid” field and select the appropriate Payment Account/Mode of Payment in the relevant table.
3. If you also intend to return items via the Sales Invoice, activate the “Update Stock” field.
4. Save and submit the Credit Note.

Following this entry, the sold items will be returned to your Warehouse, and the payment received from the Customer will be reversed.

Subsequent to the creation of the Credit Note, the Outstanding Balance of the Sales Invoice will become negative. This allows for adjustment of this Sales Invoice (with a negative balance) against future outstanding Sales Invoices.

Unpaid Sales Invoice – Credit Note

In instances where a customer requests a Sales Return without having made any payment, you can simply create a Credit Note. Upon the creation of the Credit Note, the Outstanding balance of the associated Sales Invoice will display as negative.

For stock adjustment, you have the flexibility to either generate a Sales Return against the Delivery Note or activate the “Update Stock” field within the Credit Note itself.