## Zoho Inventory Documentation Index

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https://www.zoho.com/us/inventory/llms.txt

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

#### Step 1: Create an invoice for the sales order

*   Open the sales order.
*   Click on **Create > Invoice**.
*   Save the invoice and keep it unpaid.

#### Step 2: Create a sales return

*   Navigate to the sales order.
*   Open the sales order.
*   Click on **Create > Sales Return**.
*   Configure the items and the quantity returned.
*   Click **Save**.

#### Step 3: Receive items from the sales return

*   Open the sales return.
*   Click on **Receive** and choose whether you want to receive the items partially or completely.
*   Click **Save** to record a receive of the items in your warehouse. This will increase the physical stock of the item.

#### Step 4: Associate a credit note to the sales return

*   Open the sales return.
*   Click on the **Create Credit Note** button.
*   Save the credit note.

#### Step 5: Apply credits to invoice

*   Open the above credit note.
*   Click on the **Apply to Invoice** button.
*   Against the above created invoice number, enter the invoice amount itself in the **Amount to Credit** field.
*   Click **Save** to apply the credits. This will offset the invoice amount and completes the return process for your order.