What’s the Recommended Way to Handle Returns and Credit Notes in Zoho Inventory for a Shipped and Invoiced Order?
Zoho Inventory makes it easy to handle product returns by allowing users to initiate returns, restock items, and issue credit notes or refunds.
Initiate the Return:
Go to the relevant Invoice or Sales Order and click on Create Return.
Select the items being returned and the quantity.
Restock Returned Items:
Choose whether returned items are resellable or need to be marked as damaged.
If restockable, they are added back to available inventory.
Issue Credit Note:
Automatically generate a Credit Note for the returned items.
Link this credit to the original invoice to adjust the customer’s outstanding balance.
Refund (Optional):
If refunding instead of issuing credit, you can record it under the Payments Received section as a refund against the Credit Note.
Why This Workflow Matters:
Managing returns properly protects your financial integrity, ensures accurate stock records, and improves customer satisfaction by offering smooth return/refund experiences.
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