Return Workflow

Return Workflow

Understanding the complete sales return workflow helps you process returns efficiently, maintain accurate records, and ensure proper handling at each stage. This guide walks you through the end-to-end return process in EquiBillBook.

Overview of Return Workflow

The sales return workflow typically follows these stages:

1. Return Initiation: Customer requests return or you identify need for return
2. Verification: Verify the original sale and return eligibility
3. Return Creation: Create sales return record in the system
4. Credit Note Generation: System generates credit note automatically
5. Stock Restoration: Stock is added back to inventory
6. Account Adjustment: Customer account is credited
7. Documentation: Print/email credit note to customer
8. Physical Processing: Receive and inspect returned items
9. Completion: Return is marked as completed

Stage 1: Return Initiation

Returns can be initiated in several ways:

• Customer Request: Customer contacts you to return items
• Quality Issue: You identify defective or incorrect items
• Warranty Claim: Item returned under warranty
• Policy Return: Return within return policy period

Information to Collect:

• Original invoice number
• Items being returned
• Quantities for each item
• Return reason
• Customer contact information

Stage 2: Verification

Before processing the return, verify:

• Invoice Validity: Confirm the invoice exists and is valid
• Return Eligibility: Check if return is within policy (time limits, conditions)
• Item Verification: Verify items match the invoice
• Quantity Check: Ensure quantities don't exceed original sale
• Previous Returns: Check if returns were already processed for this invoice
• Customer Identity: Verify customer identity for high-value returns

Stage 3: Return Creation

Create the sales return in the system:

1. Navigate to Sales → Sales Return → Create
2. Search and select the original invoice
3. Review invoice details and items
4. Select items to return
5. Enter return quantities
6. Select return reason(s)
7. Add notes or documentation
8. Review return totals and calculations
9. Save the return

Stage 4: Credit Note Generation

After saving the return:

• System automatically generates a credit note
• Credit note number is assigned
• Credit note is linked to original invoice
• Credit note details are calculated (subtotal, tax, total)
• Credit note is saved in the system

Stage 5: Stock Restoration

If stock tracking is enabled:

• Returned quantities are automatically added to inventory
• Stock is restored to the original location/branch
• Batch/lot information is maintained if applicable
• Stock movement record is created
• Current stock levels are updated

Stage 6: Account Adjustment

Customer account is automatically updated:

• Customer account balance is credited with return amount
• If invoice was unpaid, outstanding balance is reduced
• If invoice was paid, credit is available for refund or future purchases
• Customer statement reflects the credit

Stage 7: Documentation

Generate and share documentation:

• Print Credit Note: Print credit note for your records
• Email Credit Note: Send credit note to customer via email
• File Documentation: Keep return authorization, photos, etc.
• Update Records: Ensure all paperwork is properly filed

Stage 8: Physical Processing

Handle the physical return:

• Receive Items: Accept returned items from customer
• Inspect Items: Check condition, verify quantities
• Quality Assessment: Determine if items are saleable, damaged, or defective
• Segregation: Separate items based on condition if needed
• Update Status: Update return status based on inspection

Stage 9: Completion

Finalize the return:

• Mark return as completed if all steps are done
• Process refund if applicable (separate process)
• Apply credit to other invoices if requested
• Close the return record
• Update any follow-up actions needed

Return Status Flow

Typical status progression:

• Draft: Return is being prepared
• Pending: Return created, awaiting processing
• In Process: Return is being processed
• Completed: Return is fully processed
• Cancelled: Return was cancelled (requires reversal)

Partial Return Workflow

For partial returns:

• Process return for selected items/quantities only
• System tracks remaining returnable quantities
• Additional partial returns can be processed later
• Each partial return generates its own credit note
• All returns are linked to the original invoice

Multi-Step Approval (if applicable)

Some organizations require approvals:

• Manager Approval: For returns above certain value
• Quality Approval: For defective items
• Finance Approval: For high-value returns
• Workflow Rules: System can enforce approval workflows

Integration Points

The return workflow integrates with:

• Sales Module: Links to original invoices
• Inventory Module: Stock restoration
• Accounts Module: Account adjustments and credit notes
• Reporting Module: Return reports and analytics
• Customer Module: Customer account updates

Workflow Best Practices

• Establish clear return policies and communicate them to customers
• Train staff on the return workflow and procedures
• Process returns promptly to maintain customer satisfaction
• Verify all information before creating returns
• Document return reasons for analysis and improvement
• Inspect returned items before considering them as saleable stock
• Maintain proper documentation for audit purposes
• Review return workflows periodically for optimization
• Use return data to identify and address root causes

Common Workflow Scenarios

Scenario 1: Simple Return (Paid Invoice)

1. Customer returns item with invoice
2. Create return, generate credit note
3. Process refund or apply credit to account

Scenario 2: Return (Unpaid Invoice)

1. Customer returns item from unpaid invoice
2. Create return, generate credit note
3. Outstanding balance automatically reduced

Scenario 3: Partial Return

1. Customer returns some items from invoice
2. Create partial return
3. Process remaining items separately

Scenario 4: Defective Item Return

1. Customer reports defect
2. Create return with "Defective" reason
3. Inspect item and handle accordingly
4. Consider warranty or supplier claim

Troubleshooting Workflow Issues

Return cannot be created?

• Verify invoice exists and is valid
• Check return policy and time limits
• Ensure you have proper permissions
• Verify items and quantities are correct

Credit note not generating?

• Ensure return was saved successfully
• Check credit note numbering settings
• Review any error messages
• Verify system configuration

Stock not restoring?

• Check if stock tracking is enabled
• Verify item settings for stock tracking
• Review inventory module status
• Check for error messages

Understanding and following the complete return workflow ensures efficient processing, accurate records, and satisfied customers. Each stage is important for maintaining proper accounting, inventory accuracy, and business operations.