How To: Create and Process a Refund from a Sales Order

Table Of Contents

Before You Start
Create a Credit Note Refund
Refund the Customer
Important Information
Related Articles
You can refund individual items directly from a sales order using the Refund button. This method is typically used when there is no physical return, or when you do not want to record the item as missing stock through the Returns process.
If you need to refund an entire order, see How To: Refund a Whole Order.

Before You Start

  • The sales order must have been issued before the Refund button can be used.
  • This process creates a linked credit note against the original sales order.
  • Using the Refund button does not affect stock levels.

Create a Credit Note Refund

  1. Open a Sales Order screen (show me how).
  2. Load the sales order containing the item you want to refund.
  3. Select the item line to be refunded.
  4. Click the Refund button.
    Note: The Refund button is only available for issued sales orders.
  5. Click Yes when the warning message appears.
  6. Click Yes to create a linked Credit Note Refund.
  7. Click Yes on the confirmation message.
    A new credit note will be created and opened automatically.
    Note: By default, the credit note will only refund the value of the selected item(s).
    If you also need to refund delivery charges:
    • Click the button next to the Delivery field.
    • Change the traffic light filter to Green.
    • The credit note total will update to include both the item value and delivery charges.
  8. Press Ctrl+S or click Save to save the credit note.
    Note: Any Extended Descriptions from the original order are automatically copied to the credit note.

Refund the Customer

Once the credit note has been created, it can be used against future orders.
If the customer would like the money returned instead of keeping the credit on their account, complete the following steps:
  1. Open the [ Sales Order (Credit Note) | Payment ] tab.
  2. Click the Refund button to open the Refunds Dialog.
  3. Select the bank account the refund should be paid from.
  4. Click OK to process the refund.

Important Information

  • Creating a credit note allows the customer to use the value against future purchases.
  • Processing a refund from the credit note returns the funds to the customer.
  • Because the Refund button does not affect stock, it does not post any values to the Cost of Sales (CoS) nominal.
  • If returned stock needs to be recorded, use the Returns process instead of the Refund button.

See Also


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