Return Against Invoice

Return Against Invoice

Processing returns against specific sales invoices ensures proper tracking, accurate accounting, and maintains a clear audit trail. This guide explains how to create returns linked to original invoices in EquiBillBook.

Why Return Against Invoice?

Returning items against the original invoice provides several benefits:

• Accurate Tracking: Maintains a clear link between the sale and return
• Proper Accounting: Ensures credit notes are correctly matched to invoices
• Inventory Accuracy: Stock restoration is linked to the correct location and batch
• Audit Trail: Complete history of transactions for compliance and reporting
• Customer Reconciliation: Easier to reconcile customer accounts and statements

Finding the Original Invoice

To process a return against an invoice:

1. Navigate to Sales → Sales Return → Create
2. Use the invoice search field to find the original invoice:
• Enter the invoice number directly
• Search by customer name and date range
• Filter by invoice status if needed
• Browse recent invoices from the customer
3. Select the invoice from the search results

Invoice Details Display

Once you select an invoice, the system displays:

• Invoice Information: Invoice number, date, customer details
• Original Items: All items from the original invoice with quantities and prices
• Original Totals: Subtotal, tax, discount, and grand total from the original invoice
• Previous Returns: Information about any existing returns against this invoice
• Available Quantities: Shows how much of each item can still be returned

Selecting Items to Return

When processing a return against an invoice:

1. The system shows all items from the original invoice
2. Select the items that the customer wants to return
3. Enter the return quantity for each item
4. The system validates that return quantities don't exceed:
• Original quantities sold
• Already returned quantities (if partial returns were made previously)
5. Unit prices are typically locked to match the original invoice prices

Partial Returns Against Invoice

You can process multiple partial returns against the same invoice:

• First Return: Return some items or partial quantities
• Subsequent Returns: Create additional returns for remaining items
• System Tracking: The system tracks total returned amounts per invoice
• Validation: Ensures you cannot return more than was originally sold
• Credit Note: Each return generates its own credit note, all linked to the original invoice

Automatic Credit Note Linking

When you create a return against an invoice:

• A credit note is automatically generated
• The credit note references the original invoice number
• Customer account is credited with the return amount
• The credit can be applied against:
• The original invoice balance (if unpaid)
• Other outstanding invoices
• Future purchases
• Refund processing

Stock Restoration

When returning against an invoice:

• Stock is restored to the same location/branch as the original sale
• If batch/lot tracking is enabled, stock is restored to the correct batch
• If expiry tracking is enabled, the original expiry dates are maintained
• Stock movement history records the return linked to the original sale

Tax Handling

Tax calculations for returns:

• Tax is typically reversed in proportion to the returned quantities
• Tax rates match the original invoice tax rates
• GST/VAT reversal follows applicable tax regulations
• Tax credit is properly accounted for in tax reports

Invoice Status Impact

Returns affect the original invoice status:

• Paid Invoices: Returns create credit that can be refunded or applied to other invoices
• Unpaid Invoices: Returns reduce the outstanding balance
• Partially Paid: Returns adjust the remaining balance
• Fully Returned: If all items are returned, the invoice may show as fully credited

Return Validation Rules

The system enforces several validation rules:

• Cannot return more quantity than was originally sold
• Cannot return items that weren't in the original invoice
• Cannot process returns if the invoice is cancelled (may need to reverse cancellation first)
• Return dates should typically be after the invoice date
• May have time limits on returns depending on your settings

Best Practices

• Always verify the invoice number matches what the customer is returning
• Check the original invoice details before processing the return
• Review previous returns against the same invoice to avoid over-returning
• Verify customer identity for high-value returns
• Keep documentation (invoice copy, return authorization) for audit purposes
• Process returns promptly to maintain customer satisfaction
• Review return policies and time limits before processing

Viewing Return History

To view all returns against a specific invoice:

• Open the original sales invoice
• Look for a "Returns" or "Credit Notes" section
• View all linked returns and credit notes
• See the total returned amount and remaining balance

Troubleshooting

Cannot find the invoice?

• Verify the invoice number is correct
• Check if the invoice belongs to a different branch (if using multi-branch)
• Ensure the invoice hasn't been deleted or archived
• Try searching by customer name and date range

Cannot return the full quantity?

• Check if partial returns were already processed
• Review the "Available to Return" quantity for each item
• Verify the original invoice quantities

Credit note doesn't match expected amount?

• Verify quantities and prices match the original invoice
• Check if discounts or charges are being adjusted correctly
• Review tax calculations and ensure they match the original invoice tax structure

Returning against invoices ensures accurate accounting, proper stock management, and maintains a complete audit trail of all transactions. This approach is essential for businesses that need to track returns accurately and maintain compliance with accounting standards.