The items are shipped but the order was cancelled before receiving the payment. How do I handle the return for this in Zoho ERP?

If the items are shipped and the order is cancelled before receiving payment, you can record the return and adjust the invoice using a sales return and credit note.

Step 1: Create an invoice for the sales order

• Navigate to Sales from the left sidebar.
• Select Sales Orders from the top module bar.
• Open the sales order you want to invoice.
• Click Convert to Invoice.
• Review the invoice details.
• Make any required changes and click Save and Send.

Step 2: Create a sales return

• Open the partially or completely fulfilled sales order for which you want to create a sales return.
• Click Create and select Sales Return.
• Enter the sales return details and click Save.

Step 3: Receive items from the sales return

• Navigate to Sales from the left sidebar.
• Select Sales Returns under Invoices from the top module bar.
• Open the required sales return.
• Click Receive.
• Enter the items and quantities to be received.
• Click Receive.

Step 4: Associate a credit note with the sales return

• Open the sales return for which the items were received.
• Click Create Credit Note.
• Fill in the required details.
• Click Save.

Step 5: Apply credits to the invoice

• Navigate to Sales from the left sidebar.
• Select Credit Notes under Invoices from the top module bar.
• Open the credit note.
• Click Apply to Invoice.
• Enter the credit amount to apply against the invoice.
• Click Save.