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:
- Method One will keep the documentation and therefore audit trail;
- 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.
Method One - Keep the Documentation
- Adjust the out of stock item into stock, see How To: Adjust Stock Levels for a Single Item.
- 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.
- 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.
- Issue the sales invoice.
- 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.
- 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
- Open a Sales Order screen .
- Using the filters find the sales order in the grid.
- Double-click on the Sales Order.
- Go to the
[ Sales Order | Detail | Payment ]tab.
- Press to enter edit mode. + or click
- Select the payment line and click on the Delete Payment button above the payment grid.
- Save the order.
Delete the Sales Order
- Click to delete the Sales Order
- 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).
- Click 'Yes' to the prompt.
Refund the Credit Card Payment
- Open a Customer screen .
- Go to the
[ Customer | Detail | Statement ]tab.
- Right click in the left hand grid and select "Refund - Refund Credit Note or Payment (automatic)".
- 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'.
- In the 'Confirm' popup click 'Yes'
- In the 'Information' popup click on 'OK'.