The items are not shipped but the payment has been accepted. Is it essential to create a sales return if my customer cancels the entire order before shipping?

It is essential to create a sales return only when the shipped items are returned. To provide only a refund for the cancelled order, you need to create a credit note for the customer. To handle this in Zoho ERP:

• Go to Sales on the left sidebar.
• Click Invoices on the module bar at the top, and select Invoices from the dropdown.
• Select the invoice for which you want to create a credit note.
• Click on More and select Create Credit Note.
• Fill in the required details.
• Click Save.

To apply credits to invoices

• Open the credit note.
• Click Apply to Invoice.
• You can apply all the credits to a single invoice or distribute it among the pending invoices.
• Click Save.

To record a refund

• Open the credit note.
• Click on More and select Refund.
• Enter the refund amount and select the expense account.
• Click Save.