Sales Return / Credit note. Why so complicated!?

I’m trying to understand better the refund process in Erpnext because everytime it’s a pain.

Let says, I have a Sales order for an in stock item. Item is delivered with delivery note. Sales invoice is created and paid.

Now the customer want to return 1 item and but something new.

  1. I need to go in the sales invoice and make a Return / Credit note. Then it create a negative balance on the customer account.
  2. I need to go to the delivery note to create a Sales return (to restock the item because it’s not possible to do it in the Credit note directly).
  3. I need to close the sales order because it’s now open and incomplete because I now I one item not delivered.
  4. I create a new invoice for the customer BUT I can’t apply the negative balance on his account the the invoice. Payment reconcillaiton tool doesnt work either for that.
  5. Go to journal voucher to make a entry to apply the payment to the invoice so the outstanding amout is right.
  6. Enter customer payment to close this invoice.

Am I missing something or this is really complicated? How can I learn this to an employee and make sure he dont forget anything and dont forget to put the item back in stock so the inventory balance…


This entire process can be avoided if you check the “Update Stock” checkbox in the Sales Invoice.

This was ensure that the stock is deducted when the Sales Invoice is issued. When you directly create credit note from the invoice, the stock will be automatically updated.

Hope this helps.

No, you can’t because if the delivery has been made on the sales order, you can’t use update stock on the sales invoice to make the return…

What about the payment/credit? Is there an other way then Journal entry?