Customer Credit Notes/Refunds


A credit note is considered a negative invoice. It is a way to amend the details of a sale order or invoice after it has already been authorised. Credit notes can only be issued to sale orders with Completed status. Credit Notes can be voided at any point by clicking Void Credit Note.

 

There are four scenarios where a credit note can be applied in DEAR Inventory Systems. These are:

  • For individual items - when a unit price has been overcharged

  • For part of a shipment - when part of the shipment has either been short-shipped or damaged goods were received by the customer.

  • For a whole shipment - when an entire shipment was received incorrectly by the customer or it was shipped out incorrectly.

  • For a discount applied to an order once the purchase order is completed. 


It is also now possible to create standalone credit notes to a customer that are not linked to any particular sale. 


Create a credit note (optional)


  1. For individual items 

  2. For part of a shipment

  3. For a whole shipment

  4. For a discount applied to the order

  5. Standalone credit notes

  6. Multiple credit notes

  7. Refunds


To add a credit note (these steps are the same for each case):

  1. Navigate to Sale -> View All. 

  2. Select the sale order you wish to apply the credit note to.

  3. Select the Credit Note tab of the sale order.

  4. Enter a credit note Date. The credit note number will be assigned automatically when the credit note is authorised. 

  5. Enter the credit note lines either:

    1. Automatically - Copy from the invoice tab by clicking + Copy

    2. Manually by clicking + Credit note line


For individual items

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To add a credit note to an item:

  1. If adding credit note lines automatically from the sale invoice, remove any items that were not overcharged.

  2. In the Price field, enter the difference between the correct price and the overcharged price.

  3. Click Authorise.

  4. Issue a refund if the customer has already made a payment (For Xero Accounting users only)


For part of a shipment

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To add a credit note to part of a shipment:

  1. If adding credit note lines automatically from the sale invoice, remove any item lines that were correctly received. 

  2. In the Quantity field of the item line, enter the number of items that were incorrectly received. 

  3. Click Authorise.

  4. You will be automatically prompted to Restock the credit note items. 

  5. Click Authorise.

  6. Issue a refund if the customer has already made a payment (For Xero Accounting users only).



The items will then be re-added to your stock levels. If the items were damaged, you can then write them off from the inventory tab.



For a whole shipment

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To add a credit note to a whole shipment:

  1. Check all the items in the shipment have been copied across to the credit note tab.

  2. Click Authorise.

  3. You will be automatically prompted to Restock the credit note items.

  4. Click Authorise.

  5. Issue a refund if the customer has already made a payment (For Xero Accounting users only).

 


All of the items included in the shipment will then be re-added to your stock levels. If the items were damaged, you can then write them off from the inventory tab.



For a discount applied to an order

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To add a discount to the whole order:

  1. Check all the items in the shipment have been copied across to the credit note tab.

  2. Make a note of the total cost of the shipment.

  1. Click + Additional Charge.

 

  1. Fill in the Description field.

  2. Insert the discount value into the Price field.

  3. Check that the correct Account and Tax Rule is applied.

  4. Click Authorise.

  5. Issue a refund if the customer has already made a payment (For Xero Accounting users only).



Standalone credit notes

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If a credit note needs to be issued to a customer without being linked to a particular order, such as when goods are not being returned but the customer still needs to be refunded, a standalone credit note can be created.


To create a standalone credit note:

  1. Navigate to Sale -> Orders -> New Sale Credit Note
  2. Select a Customer from the dropdown list or type one in


  1. Most of the information will be filled automatically. Check the details and amend any if necessary.
  2. Enter a Credit Note Date and Customer Reference (if applicable).
  3. Assign a Sales Representative
  4. Click +Credit Note Line to add items. The dropdown list of products will not come up (as the credit note is not associated with a sale order) but a generic line item can be typed in.
  5. Enter the Price
  6. Click Authorise


Multiple Credit Notes

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To create multiple credit notes for the same sale, you need to convert the sale to a sale with Advanced features. See this article for more information. 





Refunds

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Refunds can be given to customers if they have made payments. It is recommended that payments and refunds are set up in the integrated accounting application to be pulled into DEAR Inventory. For Xero Accounting users, payments and refunds can be created in DEAR and pushed to Xero. Users of other accounting software need to manage their payments through the accounting software. For more information, see here. 


If Customer Credits have been set up (See here), refunds can be returned to customer credit. 

 

To refund a customer (for Xero Accounting users only):

  1. Check that payments are set up to be pushed to Xero Accounting

  2. Click +Refund

  3. If Credit Note currency is different to user base currency, provide the conversion rate used by the bank when the payment was made.

  4. Choose Account from the dropdown list

  5. Enter Reference, Date Paid and Amount Paid

  6. Click Save to save the refund and push it to Xero Accounting.