Skip to main content

Sales Returns

A Sales Return is what you record in MyBooks when a customer sends goods back to you — for example, a damaged item, an incorrect order, or a return under your return policy. In MyBooks, recording a Sales Return and recording a Credit Note are the same action: "Sales Return" describes the physical event (goods coming back), while "Credit Note" describes its accounting effect (reducing what the customer owes).

When to Record a Sales Return​

  • A customer returns some or all of the goods from an invoice.
  • Goods were damaged, incorrect, or otherwise unsuitable and are being sent back to you.
  • You need to reduce the amount a customer owes after invoicing them, because of returned goods.

Recording a Sales Return​

  1. Go to Transactions > Sales Returns.
  2. Click Create Sales Return.
  3. Select the Customer.
  4. Add the Items being returned, with the quantities and the price at which they were originally sold.
  5. Confirm the Tax details — tax is reversed automatically based on the item and customer's GST treatment.
  6. Add a Notes field to record the reason for the return.
  7. Click Save.

Effect on Stock​

If the item you're returning is one you track inventory for, recording the Sales Return adds the returned quantity back to your stock on hand — the reverse of what happens when you sell the item on an invoice. Items that aren't inventory-tracked simply record the financial return with no stock impact.

Effect on the Customer's Balance​

Once saved, the Sales Return is available as an open credit on the customer's account. You can:

  • Apply it to an open invoice to reduce what they owe, or
  • Leave it as a credit balance to apply to a future invoice.

For the full mechanics of applying a credit, tracking its status, and its GST impact, see Credit Notes — a Sales Return and a Credit Note in MyBooks are the same record, so everything in that guide applies here too.

Sales Return vs. Credit Note — Is There a Difference?​

Not really — in MyBooks these are two names for the same transaction. Going to Transactions > Sales Returns and saving a new return creates what your accountant would call a Credit Note. Use whichever term feels more natural: "Sales Return" if you're thinking about the physical goods coming back, "Credit Note" if you're thinking about the accounting adjustment.

Plan Availability​

Sales Returns are available on the Standard plan and above.