Sales Return from Sales Invoice

To process a sales return from an existing sales invoice in ERPNext, open the original submitted invoice, click Create > Return, and set the item quantities to negative. Save and submit to reverse the accounting entries, generate a credit note, and update your stock.

Step-by-Step Return Process

Follow this workflow to easily process customer returns:

1. Locate the Invoice: Go to your Sales Invoice List and open the original, submitted sales invoice that the customer is returning items against.
2. Initiate the Return: Click the Create button in the top-right corner of the invoice and select Return.
3. Adjust Quantities: The system will populate a new Sales Invoice/Return draft. Update the Quantity field to a negative value for the items being returned . If they are only returning a partial amount, edit the negative number to reflect the specific returned quantity.
4. Update Stock: Ensure the Update Stock checkbox is checked if the returned goods are physically coming back into your warehouse . You may need to specify the correct Warehouse, Batch No, or Serial No.
5. Save and Submit: Verify the rates, taxes, and customer details, then click Save and Submit.

Once submitted, ERPNext will automatically create a Credit Note to credit the customer's account receivable balance, debit the appropriate income or tax accounts, and increase your inventory balance .