Returns Inwards & Outwards

Teek

Hi there, i need help on how to deal with returns inwards and outwards in wave, that is, when my clients return goods, i usually issue a credit note and the amount is usually not paid out, but we deduct from what we owe each other as we have a continuous relationship. and also how do i treat when i return goods to suppliers..

Barsin

Hey there @Teek

So if you have an ongoing relationship with this client I would recommend doing this on an invoice level. But I'm curious how you are making these transactions? Are you simply discounting them on their next invoice? Or is there an actual refund transaction happening from your account to theirs?

You mentioned a credit note. If that's the case I would simply add a new line item on your invoice called "credit" or "discount" and place a negative value in front of the amount. This will discount your invoice for whatever the value is. See my screenshot below!

Hope this helps.

Teek

Thank you @Barsin that's helpful, i'll record a credit note as a line item... i normally discount them on their next invoice. Out of curiosity how would i go about dealing with an actual refund?

Barsin

Hey again, @Teek

So what you'd need to do here is select the expense (since there is money leaving your account to refund your client) categorize that expense as a refund issued to an invoice.

This will essentially add a line item on your invoice which is a negative value for that charge. My example shows $100. So if your invoice is for $100, a new line item will appear as -$100 negating the invoice. However this will leave your invoice in a state that is overdue. When that is the case, follow THESE STEPS IN THIS ARTICLE.

Don't be intimidated by the "bad debt" headline. It's our way of dealing with refunds and bad debt!