## Zoho Inventory Documentation Index

Access the complete documentation index at:
https://www.zoho.com/us/inventory/llms.txt

Use this file to discover all available documentation pages before proceeding.

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

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

#### Step 1: Create a sales return

*   Navigate to the sales order.
*   Open the sales order.
*   Click on **Create > Sales Return**.
*   Enable the option **‘This sales return contains credit-only goods’**.
*   If any item was damaged/expired, enter the damaged quantity in the **Credit-Only** field for that item. This quantity won’t be taken into stock.

**Insight:** In this case, you have to record a sales return even though there is no return initiated for the product. Since you have specified the quantity returned under **‘Credit-Only’**, it will not be taken back into stock. Hence, it’s the same as the customer not returning it. This step is essential to create a credit note for the item.

*   Click **Save**.

#### Step 2: Create a credit note

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

#### Step 3: Record a refund

To record a refund:

*   Open the above credit note.
*   Click on **More > Refund**.
*   Enter the refund amount and select the expense account.
*   Click **Save** to record the refund.

The return process is complete.