Restocking fees

When customers return an item you may charge them a restocking fee. This article provides a guide on how to account for them.

How to account for restocking fees

  1. Create a new account code related to restocking fees via Accounting > Chart of Accounts.
  2. Set up a new service (non-stock tracked) product called Restocking Fee. Set the Sell code to be the account code created in the previous step.
  3. Create a sales credit for your customer.
  4. Add the Restocking Fee product to the order.
  5. Insert a negative price value against this line on the credit (ie -10.00 to specify a negative value of £10)


This has reduced the money due back to the customer from £200 to £190.

Refund the customer via your chosen payment method, and complete the credit by clicking the green Credit button.

Here are the resulting accounting transactions (in our example the £10 restocking fee is taxable, hence £8.33 against miscellaneous income, and £1.67 for sales tax):


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