Returned Items / Cancelling Shipped Orders (Magento)

 All documentation in this document relates to a previous version of the Brightpearl Magento extension which will be deactivated by September 2017. If you are using this previous version, please contact us about upgrading.

For help with the current extension, please see the Magento section. 


If a customer cancels an order or returns items you need to identify whether items have been shipped and received back, whether the customer has paid and if they have do they need refunding or will you give them credit towards a future purchase?

Depending on what stage your order has reached you will be able to cancel the order or you will have to create a sales credit to reverse the original order. This decision tree should help you identify what the correct course of action is:

return etc

Refunds & Returns

Where a customer has placed an order, received the items and paid but then returned the items you will need to create a sales credit in Brightpearl. It is then up to you whether you refund the customer or leave the amount as a credit on their account against future purchases. If items have been returned by the customer, these can also be received back in from the sales credit. Follow these steps for refunds and returns:

1. Clone the Brightpearl sales order to a sales credit
2. Refund the customer / leave the amount on account
3. Deal with any returned goods

1. Clone the sale to a credit

To record the returns in Brightpearl you will need to create a sales credit:

  1. In Brightpearl, search for and open the original sale.
  2. Click the drop-down menu on the edge of the Save changes button within the sale.
  3. Select Clone to credit note .
  4. The credit note is displayed; it looks very much like the sale, but has a reference beginning with SC#. You will also see the link to the parent order (the original sale) at the top.
  5. Click the Credit button at the top (this is similar to invoicing a sale).

This will lock the sales credit to any changes, update the customer's account and post an accounting journal to reduce sales, tax and debtors as necessary. It won't refund the customer their money, we'll look at that later.

2. Refund the customer / leave the amount on account

When the customer has already paid for the original sale you will usually either refund the money or give them a credit against a future purchase (or outstanding debt).

Refund the money

For refunds you need to ensure 2 things are done. Firstly that the customer gets their money back, and secondly that the refund is recorded in Brightpearl.

Refunding the customer's money will depend on the payment method you are using. You will need to log into your payment provider account and manually create the refund, including PayPal (UK ONLY -  unless you have used the Brightpearl integration with SagePay -  If you ARE using one of these integrations you will be able to generate the actual refund to the customer during the process of recording it in Brightpearl).

All refunds will need to be recorded in Brightpearl accounting. This will need to be done manually for each refund, except PayPal refunds which can be downloaded.

  1. From within the cloned sales credit, scroll to the bottom.
  2. Click the Do refund button.
  3. Complete the displayed fields (UK ONLY -  If you have integrated with a payment provider you will be able to use the links to go there now and process the refund).
  4. Click the Allocate payment button.

This will update the sales credit to show the amount was refunded, clear the credit from the customer's account and post an accounting journal to decrease your bank account. Remember, you will need to send the money to the customer separately.

Leave the amount on account

If your customer is to be given a credit for use against future purchases (or any currently outstanding debt) you can leave the amount on their account. To leave the amount on account you don't need to do anything else; after you have raised the sales credit it will be displayed on the customer account until it is either refunded or allocated against any other debt (invoices). When the customer makes a purchase in the future, or if they have outstanding debt currently, you can allocate the sales credit to the invoices:

To allocate (match) the payment (and or credit note) to the invoices:

  1. Click the Pay in full button next to ALL of the invoices AND the sales credit.
  2. Ensure the total at the bottom is ZERO, you are not taking any payment, just matching.
  3. Select the bank account and if you want, enter a reference (optional).
  4. Click the Allocate payment button to finish.

The items are cleared from the account. You can still see the items in the customer's financial history. In the accounting the payment will be updated with the invoice numbers it has paid.

3. Deal with any returned goods

If goods have been returned you will need to receive them and then decide what you going to do with them:

  1. From within the sales credit, click the Receive inventory button.
  2. The items are received into "quarantine". This means they won't yet be available to sell, just in case they are damaged for example and you want to put them into scrap.

Return items to inventory for reselling

This means you need to move the items out of quarantine and back into normal inventory.

  1. Go to Products > Inventory in transit .
  2. To release an item or multiple items back into inventory (if you are using locations this will use their default location), tick the checkbox next to the item and then click the Release items button above. (If you use locations and want to move the items into a location other than the item default click the Actions icon on the far right of the item).

You inventory levels are immediately updated and in turn the items will be available on all your sales channels such as eBay or Magento.

Scrap items that cannot be resold

To scrap items and write of the value you will need to firstly move them into normal inventory and then do an inventory correction to remove them. If you are using locations you might choose to bring them into a location specifically for "damaged goods".

  1. Go to Products > Inventory in transit .
  2. To release an item or multiple items back into inventory (if you are using locations this will use their default location), tick the checkbox next to the item and then click the Release items button above. (If you use locations and want to move the items into a location other than the item default click the Actions icon on the far right of the item).
  3. Go to Products > Remove inventory .
  4. Click the link to go to the inventory detail report.
  5. Find the product and click the in stock figure to edit it.
    Note : Products are listed separately for each cost they have been received at, and separately for each location they have been placed in (if you are using multiple concurrent locations).
  6. Enter the quantity to remove from inventory.
  7. Click the Remove items button to finish.

This will reduce your inventory quantity and create an accounting journal to adjust the inventory value appropriately. This journal will credit your inventory nominal code and debit the inventory corrections nominal code (defined at Settings > Company > Accounting: Nominal codes ).

Return items to your supplier

If you are returning items to your supplier and want a credit or refund from them you will need to firstly move the items into normal inventory as above and then do an inventory correction to remove them ( see above ). You will need to make sure they are packed up and sent or collected by your supplier. You will also need to create a purchase credit to your supplier for the refund or credit from them to you.

Cancelling Orders

Orders that have not been shipped or invoiced can be cancelled rather than having to create a sales credit. Cancelling will release any reserved inventory (allocated) back into on hand, immediately updating your availability on Magento (and other sales channels). Cancelled orders will not be listed in your sales reports unless specifically requested using the filters.

Cancel the order in Brightpearl

To cancel an order you will require a "cancelled" sales order status in Brightpearl. Create one at Settings > Sales > Sales statuses and update your workflow to use this status via  Settings > Sales > Sales workflow .

Orders cannot be cancelled if it has been paid, but a payment can easily be reversed by recording a negative payment against the order:

  1. Search for and open the sales order in Brightpearl.
  2. Click the Take payment button at the bottom of the screen.
  3. Select the bank account, enter a reference and enter the amount that you will refund as a NEGATIVE figure (with a minus sign).
  4. Click the Allocate payment button.
  5. This process will not actually refund the customer, so you now need to refund the customer their money.

Cancel an order in Brightpearl by moving it to your "cancelled" status. You can do this from within the order or using the batch processing buttons on the recent sales list.

Deleting an order in Brightpearl

If are going to delete an order in Brightpearl it must be unpaid, unshipped and not invoiced. Before deleting the order in Brightpearl you will also need to cancel the order in Magento, otherwise it will just re-download into Brightpearl!

  1. Log into your Magento admin account.
  2. Go to  Sales > Orders .
  3. Search for and tick the checkbox next to the order to be cancelled.
  4. From the  Actions  drop-down menu select "cancel".
  5. Click  Submit .

You are now able to delete the order from Brightpearl by clicking on the trash can on the recent sales list.

Related how to guides - Cancellations & Returns

How to clone a sales order to a sales credit

  1. Search for and open the original sales order containing the items to be credited or returned. Alternatively, a credit can be started from Sales > New Credit .
  2. Select the lines that are being credited, or returned. Note that quantities can be edited directly on the credit later.
  3. Click the Clone to Sales Credit button just above the line items.
    rn 454 returns

How to edit a journal

  1. Search for the journal. If you know the journal ID go to Accounting > Corrections.
  2. Enter a reason for the modification. This is useful if you need to investigate the changes in the future.
  3. Make the necessary amendments to the references, nominal codes, values and tax codes. For example, to dettach a payment from an invoice, remove the invoice references.
  4. Click the Save button.

A change history is displayed within the journal record so if required you can reverse the changes by re-entering the details.

Note : A VAT reconciled or Bank reconciled journal cannot be edited unless you unreconcile it first.

 
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