Returns and refunds

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Returns and Refunds

Efficient handling of returns and refunds is critical to customer satisfaction and business integrity. Odoo’s Sales app offers a streamlined approach to manage product returns, tailored to whether the product has been invoiced or not. This article explores both scenarios before and after invoicing along with how to issue refunds using credit notes.

Returns Before Invoicing

When a customer decides to return a product before an invoice has been sent or validated, Odoo uses a feature called Reverse Transfers to manage the return process.

Note: To use Reverse Transfers, ensure that the Inventory app is installed and configured.

How to Process a Return Before Invoicing

Open the Sales Order
Go to the Sales app and open the relevant sales order.

Access the Delivery Order
Click the Delivery smart button to view the associated delivery order.

3. Initiate the Return
On the validated delivery order, click Return to open the Reverse Transfer pop-up.

4. Modify Quantities if Needed

The quantities will default to the validated values. Adjust the quantities or remove any line items as necessary using the trash icon.

5. Confirm the Return
Click Return to confirm. This action generates a new warehouse operation for the incoming returned products.

6.Validate the Return
Once the returned items are received, the warehouse team must click Validate to confirm the operation.

After validation, the Delivered quantity on the original sales order is updated to reflect the returned items. When an invoice is later created, the customer is billed only for the products they keep.

Returns After Invoicing

In cases where a customer returns a product after they have received or paid for an invoice, the return process requires both a Reverse Transfer and a Credit Note, since invoices that have been sent or validated cannot be modified.

How to Process a Return After Invoicing

Open the Sales Order
Navigate to the relevant sales order in the Sales app.
Check Payment Status
If a payment is registered, the details appear in the chatter. The related invoice will display a green “In Payment” banner.

Initiate the Return
Click the Delivery smart button to open the validated delivery order, then click Return to launch the Reverse Transfer window.
Edit Return Details
Modify the product and/or quantity being returned. Click Return to confirm and generate the warehouse operation.
Validate the Warehouse Operation
Once the items are physically returned, the warehouse team validates the operation by clicking Validate.
Issue a Credit Note
Go back to the sales order and click the Invoices smart button to open the invoice.
Click Credit Note at the top of the invoice page.

In the pop-up window, enter a Reason, select a Journal, and choose a Reversal Date.

Finalize the Credit Note
Click Reverse or Reverse and Create Invoice. Make any necessary edits in the draft and click Confirm.

After confirming, Odoo displays a blue banner:

“You have outstanding credits for this customer. You can allocate them to mark this invoice as paid.”

This ensures that the customer receives appropriate credit, and your financial records remain accurate.

Returns and refunds

Returns and Refunds