Doing business isn’t all rainbows and sunshine. Sometimes, you hit a bump in the road that can potentially hinder your company. So, if one or many of your customers raise a return request or send you a returned goods invoice, you need to know what to do and how to react to solve the issue. Getting familiar with this matter and what a returned goods invoice entails is a good start.
What is a Return Invoice?
A return invoice is used by buyers of products and other merchandise, signifying a demand for compensation. Receiving this invoice means the customer expects either a refund or store credit from your business (via credit card or cash). The customer will mention every item they will return and include the purchase price that will be seen on the original sales receipt. In the comments section of the invoice, the customer may then provide a short note or description of the reason for the return.
As the seller, you should always expect to receive this type of invoice. It will notify you of any upcoming deduction from a payment. This document is usually generated when they are returning an order to the seller and have already paid for said order. A returned goods invoice also serves as a notice to the seller that some funds are being withheld from an upcoming payment to recover funds that were disbursed on the returned order. The purchase order that the return invoice claim will usually match up to appear on the remittance report within seven to ten days after receiving the notification.
When you receive a returned goods invoice in your email, you can locate the details regarding the purchase order by searching for the claim number in your remittance report. You can find the claim number on the upper right-hand corner of the returned goods invoice, with “W10” at the beginning. When you search for this number for your remittance report, remove the W10, and you will find the claim number in the “Invoice Number” section.
What to Do When a Customer Raises a Return Request
When you run a business, you need to make sure you know how to deal with this situation. For example, when a customer sends you a return request, it’s important to react accordingly and appropriately. But first, you need to assess the situation and if the request proves valid. Then, the sales department may take any of the following actions during the return procedure:
- Approve the complaint and create a credit memo. This document is done during customer returns where a client demands a refund or compensation for the goods they just purchased. The system will then create the credit demo for the customer with reference to the sales order.
- Approve the complaint and implement a free-of-charge subsequent delivery of the disputed goods. This process is done when the customer wants to replace the goods owning to damage in shipment or shortfall in delivery, or any other reason that proves to be legitimate.
Reject the complaint if the complainant cannot provide a legitimate or valid reason. For example, the customer complains about the wrong data.
Creating a Returned Goods Invoice
As a business, you don’t have to worry about creating a returned goods invoice since this is something the customer would send. However, you can still use this type of invoice if you want compensation after buying goods from another company. If you think that you deserve a refund of compensation, you can send this invoice to make sure you get what you deserve. Creating a returned goods invoice is similar to creating a standard invoice.
Here are some times on how you can do it:
- Make your invoice look professional – as with any invoice you send; you need to make sure that your invoice looks like a professional sent it.
- Clearly mark your invoice – make sure you add a unique invoice number to make sure you can locate your returned goods invoice for documentation.
- Add company name and information – add the appropriate company details for both you and the seller. Make sure you add the company name, address, contact number, and email.
- Write a description of the goods or services you’re changing – keep in mind that the description doesn’t have to belong. But they need to be accurate. And detailed enough for the seller to know what they’ll be paying for.
- Don’t forget the dates – make sure you add the supply date and the date you created the returned goods invoice.
- Add up the money owed – you’ll get compensated faster if your invoice is clear and concise. So, make sure you add the money owed to you and display the total amount on the bottom of the invoice.
- Mention payment terms – you should also have agreed payment terms with the customer beforehand. It’s good practice to note the terms of payment on the invoice.
- Make sure to click save – if you’re working your invoice on a word document, make sure you always click save. You don’t want to lose all of your progress. So, make sure you click save and ensure that your invoices are safe to print or send via email.
As a business, you need to know how to deal with a returned goods invoice. It’s not the most pleasant thing to receive, but knowing how to resolve the issue without your business losing money is the best option to take. Keep in mind that returned goods invoices aren’t the end of the world. Just make sure it isn’t a frequent occurrence. Otherwise, you might want to tweak your business standards and operation processes.
For more information about ReliaBills and our outstanding invoicing software, visit www.reliabills.com today.