How To: Create a refund for an order or item before it has been issued

Scenario - a sales order has been created for a stock item that is out of stock and payment has been taken. If the stock item is no longer available, or the customer wants a refund, then the following methods for refunding the customer can be used depending on your business processes:

  1. Method One will keep the documentation and therefore audit trail;
  2. Method Two will delete the documentation.

See How To: Remove an Item from a Sales Order and Refund the Excess Payment if you wish to Lost Demand a stock item.

Note: To preserve the original sell price and discounts for direct exchanges the sales order items must be moved from the upper grid to the lower grid using the direct exchange button the MOVE ROW DOWN button shows a green arrow pointing downwards. .

Method One - Keep the Documentation

  1. Adjust the out of stock item into stock, see How To: Adjust Stock Levels for a Single Item.
  2. Open the sales order and assign the stock item to the order by:
    • Focusing on the stock item.
    • Right Click and from the context menu select Stock Assignment then Assign Stock to Current Item.
    • In the Warning popup click on Yes. The stock will be assigned to the order and the line will change colour from pink.
  3. Add a extended stock description for example Out of stock please see refund note, your card has been refunded the value of this item, see How To: Add Extended Stock Descriptions.
  4. Issue the sales invoice.
  5. Immediately create a return for the out of stock item with a suitable return reason for example Out of stock " Refund with a return type of stock missing (write off), see How To: Create a Return.
  6. Attach the return note to the order so the customer understands that they have been refunded.

Method Two - Delete Documentation

Note: the sales order must be in an editable stage in the Sales Invoice Manager.

Delete the Payment Line in the Sales Order

  1. Open a Sales Order screen (show me how).
  2. Using the filters find the sales order in the grid.
  3. Double-click on the Sales Order.
  4. Go to the [ Sales Order | Detail | Payment ] tab.
  5. Press Alt+E or click the green triangle icon is the buttonbar's EDIT button to enter edit mode.
  6. Select the payment line and click on the Delete Payment the DELETE ITEM button has an icon that shows two sheets of paper (identified by having the top right corner folded down), arranged diagonally on the icon from top left to bottom right and overlaid with a red cross. button above the payment grid.
  7. Save the order.

Delete the Sales Order

  1. Click the dustbin icon is the button bar's DELETE button to delete the Sales Order
  2. Enter deletion / cancellation reason and click 'OK'.
    Note: By default, a free text description is used. Alternatively, the cancellation reason can be chosen from a pre-defined list maintained in [ System Data | Cancellation Reasons ] (this requires custom development, which may be chargeable).
  3. Click 'Yes' to the prompt.

Refund the Credit Card Payment

  1. Open a Customer screen (show me how).
  2. Go to the [ Customer | Detail | Statement ] tab.
  3. Right click in the left hand grid and select "Refund - Refund Credit Note or Payment (automatic)".
  4. In the 'Refund' popup select the appropriate information (e.g. the amount to be refunded and the bank account to be used for the refunds), then click 'OK'.
  5. In the 'Confirm' popup click 'Yes'
  6. In the 'Information' popup click on 'OK'.

See Also

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