Zoho Inventory


A customer has requested a replacement for a defective product. How do I handle this in Zoho Inventory?

Assumption: The shipment has been delivered and the invoice has been paid.

To handle an exchange for this order in Zoho Inventory:

Step 1: Create a sales return

  • Go to the sales order.
  • Click on Create > Sales Return.
  • Check the option ‘This sales return contains credit-only goods’.
  • If you don’t want the item to be taken into stock, then enter the appropriate quantity in the ‘Credit-Only’ field for that item.
  • Save the sales return with only the items that have to be exchanged.

Step 2: Create a credit note

  • Open the sales return.
  • Click on More > Create Credit Note.
  • Save the credit note with only the items that were returned.

Step 3: Create a new sales order

  • Navigate to the Sales Order module on the sidebar.
  • Click + New button.
  • Add the exchange items to the list.
  • Save the sales order.

Step 4: Create an invoice for the new order

  • Open the new sales order.
  • Click on Create and select Invoice.
  • Click Save to associate an invoice with the new order.

Keep this invoice unpaid.

Step 5: Apply credits to the invoice

  • Open the credit note created in step 3.
  • Click on the Apply to Invoice button.
  • Against the newly created invoice number, enter the invoice amount in the Amount to Credit field.
  • Click Save to apply the credits. This will offset the invoice amount and completes the exchange process for that order.