Record a Sales Return
A Sales Return (also called a Credit Note) is recorded when a customer returns goods after purchase — due to defects, wrong items, size mismatch, quality issues, or any other reason. Recording a sales return adds the items back to your inventory, reduces the customer's outstanding balance (or creates a credit), adjusts your sales and profit reports, and updates GST records if applicable. You can process full or partial returns — meaning you don't have to return all items from an invoice. Stock Register handles all the adjustments automatically, keeping your books accurate and ensuring your stock levels reflect the actual items in your store.
Steps
- Navigate to Sales > Sales Return from the sidebar.
- Click "+ Create Sales Return" to open the return form.
- Select the Customer who is returning the items.
- Set the Return Date and Credit Note Number (auto-generated, editable).
- Select the Store/Godown where the returned items should be added back to stock.
- Add the items being returned — click "+ Add Item" and search by name or barcode.
- For each returned item, enter the Quantity being returned and the Return Price/Amount.
- Apply Item-level Discount if applicable — supports both percentage and flat amount.
- GST/Tax is auto-calculated based on the item's tax settings. The GST credit is adjusted accordingly.
- Add Extra Discount (bill-level) if applicable.
- The total return amount is auto-calculated based on items, quantities, and prices entered.
- Add optional Remarks to note the reason for return (e.g., defective, wrong item, customer request).
- Click "Save" to record the return. Stock is automatically restored and customer balance is adjusted.
Tip: Always record sales returns promptly to keep your stock levels accurate and customer balances up to date. The return is reflected in your sales reports and profit calculations immediately.
Common Questions
Yes, when you record a sales return, the returned items are automatically added back to your inventory in the selected store/godown. Your stock levels are updated immediately, and the customer's outstanding balance is adjusted accordingly. The return also adjusts your sales and profit reports.
Yes, you do not have to return all items from an invoice. You can select only the specific items and quantities being returned. The return amount is auto-calculated based on the items and quantities you enter. This is useful when a customer returns only some items from a larger order.
When you record a sales return for GST-enabled items, the GST output tax is automatically adjusted. The credit note is reflected in your GSTR-1 report, ensuring your tax filings remain accurate. The GST amounts (CGST, SGST, or IGST) on the returned items are reversed.
You can view all sales returns from Sales > Sales Return in the sidebar. The list shows all credit notes with date, customer name, amount, and reference number. You can also see returns in the All Entries section and in the customer's party profile under their transaction history.
Yes, sales returns reduce your total sales figures and adjust profit calculations accordingly. The returned items' revenue and profit are reversed in your profit reports, giving you an accurate picture of actual sales and margins.
Related Guides
Ready to Get Started?
Manage inventory, billing, and accounting effortlessly.