Record a return and use a credit note
Use a return to record goods being returned and a credit note to track the resulting credit. You need the appropriate return and credit-note permissions. A credit note is not a cash refund.
Find the original order and open its return action, or locate the return from the Returns list. Check that you are working with the correct company and order.
Select the returned items and quantities and record the return details. Review the totals and follow the available processing steps until the accepted return is completed.
Review the resulting credit note from Credit Notes or the company’s Order Account section. Check the company, currency, amount and available balance.
If the credit should remain available for a later invoice, leave it unallocated. To apply available credit, open the application action and choose an eligible invoice from Invoice.
Enter the Amount to apply, review it against both the available credit and invoice balance, then confirm. Recheck the credit-note balance and invoice outstanding amount.
If an invoice is not selectable
It must be eligible for that company, workspace, order type and currency, with an outstanding balance. Paid, void, draft, quoted or cancelled records are not valid application targets. Reversing an allocation requires an authorised action and reason. Xero sync is separate from issuing or applying credit locally.