Returns and refunds

The SotaERP Sales app provides two different ways to process returns. The method used depends on whether or not an invoice has been sent.

Before invoicing

Returns are completed using Reverse Transfers when a customer decides to return a product before an invoice has been sent or validated.

Note

In order to use Reverse Transfers, the Inventory app must be installed.

To start a return before invoicing, navigate to the Sales app, select the desired sales order, and click on the Delivery smart button to open the associated delivery order.

A typical sales order with a highlighted delivery smart button in SotaERP Sales.

On the validated delivery order, click Return.

A validated delivery order with a highlighted Return button in SotaERP Sales.

This opens a Reverse Transfer pop-up window.

By default, the Quantity matches the validated quantities from the delivery order. Update the quantities, if necessary. Click on the 🗑️ (trash) icon next to a line item to remove it from the return.

The "Reverse Transfer" pop-up window, to make a return before invoicing the customer.

Next, click Return to confirm the return. This generates a new warehouse operation for the incoming returned product(s).

Warehouse operation after a return has been confirmed in SotaERP Sales.

Upon receiving the return, the warehouse team validates the warehouse operation by clicking Validate. Then, on the original sales order, the Delivered quantity updates to reflect the difference between the initial validated quantities and the returned quantities.

The updated "Delivered" quantity on the sales order after the reverse transfer.

When an invoice is created, the customer receives an invoice only for the products they are keeping, if any.

After invoicing

Sometimes, customers return an item after they receive and/or pay for their invoice. In these cases, a return using only Reverse Transfers is insufficient since validated, or sent, invoices cannot be changed.

However, Reverse Transfers can be used in conjunction with Credit Notes to complete the customer’s return.

To start a return after invoicing, navigate to the relevant sales order in the Sales app.

If there is a payment registered on the sales order, the payment details appear in the chatter, and the invoice (accessible through the Invoices smart button) has a green In Payment banner.

Sample of a green in payment banner in SotaERP Sales.

From the sales order, click on the Delivery smart button to view the validated delivery order. Then, click Return to open the Reverse Transfer pop-up window.

Next, edit the Product and/or Quantity, as needed for the return. Then, click Return. This generates a new warehouse operation for the incoming returned product(s), which is validated by the warehouse team once the return is received by clicking Validate.

Then, on the sales order, the Delivered quantity updates to reflect the difference between the initial validated quantities and the returned quantities.

To process a refund, navigate to the relevant invoice (from the sales order, click on the Invoices smart button). Then, click the Credit Note button at the top of the validated invoice.

A typical customer invoice with a Credit Note button highlighted in SotaERP Sales.

Doing so reveals a Credit Note pop-up form.

Typical credit note pop-up form that appears in SotaERP Sales.

Start by entering a Reason displayed on Credit Note and a specific Journal to process the credit. Then, select a specific Reversal Date.

After the information is filled in, click Reverse or Reverse and Create Invoice. Then, edit the draft, if needed.

Lastly, click Confirm to confirm the credit note.

When complete, a blue banner reading: You have outstanding credits for this customer. You can allocate them to mark this invoice as paid. appears at the top of the page.