Returns and credit memos

Which kind of return your company uses

An administrator chooses one in Settings → Sales → Rules (the Returns setting):

You need the Sales: create invoices permission to take a return.

Take a return

1. 1Open the invoice from Sales → Invoices.
2. 2Click Return (the button is called Credit memo when your company uses credit memos).
3. 3For each line you see what was invoiced and already returned. In Return now, set the quantity coming back with − and + or by typing it. You cannot return more than is left.
4. 4Enter the Reason.
5. 5If money goes back to the customer, pick how in Refund … by (cash, bank transfer…). For a bank transfer, enter the Transfer reference.
6. 6Click Post return (or Create credit memo) and confirm.

The return is listed under Sales → Returns (or Credit memos), and the invoice's chain at the top shows it. On a return, the Original invoice chip, or Open the original invoice under its lines, takes you back to the invoice.

Refund or credit?

• Return against the invoice. If the original invoice was paid, the full return is refunded. If it was on credit and still open, nothing is refunded; the return is credited to the customer's account.
• Credit memo. The credit memo first reduces what the customer still owes on that invoice. Only the part above that is refunded.