Separate Inventory Return from Customer Credit

ERPNext Feature Requests
1

We’re implementing ERPNext in a retail environment where different departments handle inventory and finance. We’ve found that the current Sales Return process combines two separate business activities:

  • Receiving returned goods into inventory.

  • Issuing a customer credit (Credit Note or Journal Entry).

Currently, submitting a Return Sales Invoice updates both stock and accounting at the same time.

In many organizations, these responsibilities belong to different teams:

  • Warehouse should only receive the returned goods and update inventory.

  • Finance should decide whether to issue a full credit, partial credit, apply a restocking fee, or reject the credit altogether.

For example, a customer may return damaged goods that are accepted back into the warehouse but do not qualify for a full refund.

It would be helpful if ERPNext supported a workflow like this:

Customer Return Request
        ↓
Warehouse Receives Goods
        ↓
Inventory Updated
        ↓
Finance Reviews Return
        ↓
Credit Note / Journal Entry (Optional)

This would improve:

  • Segregation of duties

  • Internal controls

  • Enterprise approval workflows

  • Warranty and RMA processes

Has anyone implemented a similar workflow? Would the core team consider supporting the separation of inventory returns from financial credits in a future release?

2

Hi,

This can be achieved with existing functionality. Your warehouse team can use the Delivery Note Doctype to make the Return, which only updates inventories.

You Finance Team can issue the credit note using the Return Delivery Note.

Thanks,

Divyesh Mangroliya

3

The business is high foot-traffic retail shop, the “Sale order” –> “Sales invoice” –> “Delivery note” was slowing things down.

The company Adopted Single Doc Sales process for its workflow.

We already programmed a Sales Invoice Workflow with option to “Updat Stock” value being updated at the state it gets to the Warehouse User.

Now when there is return, because there was no actual delivery note involved, and It was also important to mention the original sales invoice.
Standard ERPnext Delivery Note does not allow direct linking to sales Invoice, It was not possible to use the Delivery note to achieve the return.

I solve this by creating a New Doctype that picks customer, select any invoice attached to the customer, Added Get Items Button. This doctype now creates a material receipt….
I Also added a python method to create Journel from the doctype.

I posted this thread as a feature request, just in case there is opportunity to consider this enhancement to the standard delivery Note

4

Hi @kdevloper

Since you are using invoice with update stock, there is no need for custom docypte as return and credit note purpose will be served by recording sales return in the same way you have recorded the invoice with update stock earlierr.

It will return stock and book credit note too.

5

The situation is a bit nuance

If I use same sales invoice, How do the warehouse user independently process return of item(s) that updates stock bal only with out making journal entry?

My understanding of the sales invoice, it will automatically generated Journal entry in submition.

On Next stage of the workflow, Finance user would pick same doctype record and post Journal entry. This workflow also allows Finance to partially deduct restock fees etc on the credit note linked to the new doctype I called “Inventory Return”