A customer has requested a refund for receiving an expired product. How do I handle this in Zoho ERP?

Assuming that the shipment has been delivered and the invoice has been paid.

Step 1: Create a sales return

Navigate to Sales on the left sidebar.
Select Sales Orders from the top module bar.
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.
Enable This sales return contains credit-only goods as the return includes expired items.
Enter the damaged quantity in the Credit-Only field for the expired item. This quantity won’t be taken into stock.
Click Save.

Insight: Even though the customer has not initiated a return for the expired item, creating a sales return is still required to issue a credit note. By entering the quantity under Credit-Only, the item is excluded from stock updates while allowing the refund to be processed correctly.

Step 2: Create a credit note

Navigate to Sales on the left sidebar.
Select Sales Returns under Invoices from the top module bar.
Open the sales return and click Create Credit Note.
Fill in the required details.
Click Save.

Step 3: Record a refund

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

The return process is complete.