Returns & Refunds

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Overview

The Returns feature allows you to process both customer returns (sales) and supplier returns (purchases) while automatically adjusting inventory levels and maintaining accurate records.

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Key Features

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Customer Returns (Sales)

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What is a Customer Return?

A customer return occurs when:

• Customer changes their mind
• Product is defective or damaged
• Wrong item was sold
• Customer is unsatisfied
• Any other reason for returning purchased items

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Return Information

Each customer return contains:

• Original Sale: Link to the sale being returned
• Customer: The customer making the return
• Return Date: Automatically recorded
• Products Returned: Which items and quantities
• Return Amount: Total value being refunded
• Reason: Why the items are being returned
• Processed By: User who processed the return

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Creating a Customer Return

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What Happens During a Return

When you process a customer return:

1. Inventory Restoration: Product stock increases by returned quantity
2. Return Record: A complete return record is created
3. Refund Calculation: Total refund amount is calculated
4. Sale Link: Return is linked to original sale for tracking
5. Customer Record: Return appears in customer history

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Partial Returns

You don’t have to return everything from a sale: Example:

• Original sale: 5 units of Product A, 3 units of Product B
• Customer returns: 2 units of Product A only
• System processes partial return for those 2 units
• Original sale record remains intact

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Supplier Returns (Purchases)

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What is a Supplier Return?

A supplier return occurs when you return items to a supplier due to:

• Defective products
• Incorrect items received
• Damaged during shipping
• Quality issues
• Overstocked items (if supplier accepts)

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Return Information

Each supplier return contains:

• Original Purchase: Link to the purchase being returned
• Supplier: The supplier receiving the return
• Return Date: Automatically recorded
• Products Returned: Which items and quantities
• Return Amount: Total value being returned
• Reason: Why items are being returned
• Processed By: User who processed the return

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Creating a Supplier Return

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What Happens During a Supplier Return

When you process a supplier return:

1. Inventory Reduction: Product stock decreases by returned quantity
2. Return Record: Complete return record is created
3. Amount Calculation: Total return amount calculated (with IVA)
4. Purchase Link: Return linked to original purchase
5. Supplier Record: Return appears in supplier history

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Managing Returns

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Viewing Return History

Access return records: Customer Returns:

• Navigate to Sales > Returns
• View all customer returns
• See return dates, customers, and amounts

Supplier Returns:

• Navigate to Purchases > Returns
• View all supplier returns
• See return dates, suppliers, and amounts

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Return Details

Click on any return to view:

• Complete product breakdown
• Quantities and prices
• Original transaction reference
• Return reason
• Processing user and date
• Total refund amount

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Return Reports

Track returns in reporting:

• Returns are recorded separately from sales/purchases
• Track return rates over time
• Identify problematic products
• Monitor supplier quality issues

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Return Policies

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Setting Return Policies

While Inventario processes returns mechanically, you should establish clear policies: Customer Return Policy:

• Time limit for returns (e.g., 30 days)
• Condition requirements (unopened, unused)
• Refund method (cash, credit, exchange)
• Which items can/cannot be returned
• Restocking fees (if applicable)

Supplier Return Policy:

• Defective product procedures
• Return authorization process
• Return shipping responsibility
• Timeframe for returns
• Refund or credit terms

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Inventory Impact

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Customer Returns (Increase Stock)

When customers return items:

• Stock increases by returned quantity
• Items become available for resale
• Inventory value increases
• Product is back in your catalog

Before Return:

• Product A stock: 10 units

Customer returns 3 units:

• Product A stock: 13 units

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Supplier Returns (Decrease Stock)

When you return items to suppliers:

• Stock decreases by returned quantity
• Items removed from available inventory
• Inventory value decreases
• Products no longer in your possession

Before Return:

• Product B stock: 25 units

Return 5 units to supplier:

• Product B stock: 20 units

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Financial Impact

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Return Amounts

The system calculates return amounts based on: Customer Returns:

• Original sale price (including IVA)
• Quantity being returned
• Refund = Original Unit Price × Returned Quantity

Supplier Returns:

• Original purchase cost (including IVA)
• Quantity being returned
• Credit Expected = Original Unit Cost × Returned Quantity

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Impact on Reports

Returns affect various reports:

• Profit Reports: Returns reduce revenue
• Inventory Reports: Stock levels reflect returns
• Supplier Reports: Credits from returns are tracked
• Customer Reports: Return history is maintained

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Best Practices

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Common Return Scenarios

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Defective Product

1. Customer reports defect
2. Inspect item to verify
3. Process return in system
4. Refund customer
5. Consider returning to supplier
6. Note defect reason for tracking

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Wrong Item Sold

1. Verify the error
2. Process return for wrong item
3. Process new sale for correct item
4. Both transactions tracked properly
5. Review to prevent future errors

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Change of Mind

1. Verify item within return period
2. Check item condition
3. Process return if policy allows
4. Issue refund per policy
5. Restock item for resale

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Supplier Quality Issue

1. Document the problem
2. Contact supplier
3. Get return authorization
4. Process return in system
5. Ship items back
6. Track expected credit
7. Follow up on refund

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Troubleshooting

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Can’t Process Return

If return processing fails:

1. Verify you’re logged in as Admin
2. Confirm original transaction exists
3. Check quantities don’t exceed original sale/purchase
4. Ensure products still exist in catalog
5. Try refreshing the page

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Stock Not Updating

If inventory doesn’t adjust after return:

1. Verify return was saved successfully
2. Check return details show correct quantities
3. Refresh the product list
4. Review product stock history

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Return Amount Seems Wrong

If calculated return amount doesn’t match expectations:

1. Remember amounts include 19% IVA
2. Verify returned quantity is correct
3. Check original transaction prices
4. Confirm all returned items are included

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Can’t Find Original Transaction

If you can’t locate the sale/purchase to return:

1. Search by customer/supplier name
2. Search by date range
3. Check if transaction was deleted
4. Verify you’re logged in with correct account
5. Try searching by transaction ID

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Related Features

• Sales - Original transactions for customer returns
• Purchases - Original transactions for supplier returns
• Products - Inventory affected by returns
• Reports - Track return rates and impacts