Refund Process | Brightpearl Video Lecture | Using Brightpearl:Sales Order Processing - E-Commerce

in this video we're going to take a good
look at customer refunds and exchanges
we're going to see how to refund money
to a customer without receiving any
goods back we're going to see how to
receive goods from the customer and then
restock them write them off or put them
in for repair maybe quarantine we're
going to see how to refund the customer
for any returned inventory I'm going to
show you how to create a payment on
account for use against future sales
orders if you're not going to send any
goods back to the customer and then
we're going to look at exchanges both
when the goods are of the same value or
when they're of higher or lower values
in the goods you've received back the
first and simplest scenario is where you
want to refund money back to a customer
without receiving any goods from them
the process starts when the customer
calls you up or sends you an email what
you need to do is you need to get their
original sales order ID and then clone
that sale to a sales credit then you
need to remove the line items you don't
need and add a text line for the refund
then you need to capture any additional
information and then refund the customer
payment via payment service provider and
then finally complete the sales credit
in Brightpearl at the time of recording
in january 2014 we're going through a
change to the returns process so to use
the process we're looking at in this
video please get it activated on your
account by emailing design at brier
pearl calm so let's see how that works
in bright pole the customers given us an
order ID so let's pop that into the
sales quick search box which brings up
their sales order you can also search by
invoice number or even their name drop
into the sales order where you can see
it's actually the right one that you're
looking for and in this scenario the
customers phoned up saying that it was
damaged in transit and what we want to
do is simply refund five dollars so will
hover over the Save button and then go
clone to credit note you could just
create a credit note for the customer
without the original sales order but if
you do that you'll miss the link here
that goes back to the parent which is
going to be useful for you in the future
now we're not actually going to receive
the goods back from the customer so
let's get rid of this line item and then
we'll simply add a row and describe why
we're giving the refund choose an
account code and you might actually want
to create one for refunds so
it's easier to track and then put the
amount you want to refund and in this
case it's just going to be five dollars
now we actually want to refund him five
dollars including the tax so let's set
prices include tax which will calculate
it backwards for us Save Changes I'll go
across to my payment provided now refund
that five dollars maybe back onto his
paypal account on to his credit card and
then in Brightpearl click do refund
record that you've made that payment
let's say we put it back on to his
credit card we can now see that the
total on the credit much is the amount
paid back to the customer and the last
step to make sure all this goes into the
accounting system properly is hit credit
so that's recorded that we've refunded
the customer and it's closed the credit
at the top of the bank activity for the
credit card account we can see that the
customer has been paid five dollars and
it relates to the sales credit ID on the
customer activity screen which you can
reach from financial history you can see
the two transactions we've created so
we've got the SC the sales credit and
that was created when we actually
credited that sales credit and then
we've got the sales receipt which is the
money that we refund it to the customer
and they both have got the same sales
credit ID which is automatically
generated by Brightpearl and the order
ID that we've been working with next up
we're going to tackle something a little
bit more complicated this time we're
actually going to receive the goods back
from the customer as before the first
step is when the customer calls up or
sends you an email you need to get their
original sales order ID ask which items
they would like to return clone those
items to a new sales credit capture any
additional information such as custom
fields or reason for the return and then
finally email them an RMA or maybe a
returns form and on that form will be
the information they need to send the
goods back to you the next step is when
the goods arrive in your warehouse they
arrive hopefully with the RMA
documentation you've sent to the
customer and then what you need to do is
decide whether to a restock the goods be
write them off so perhaps they've been
damaged and you can't sell them again or
see put them in for quarantine
or a pair you then need to refund any
payments relevant before finally closing
or crediting the sales credit whether
you send them replacement goods is
covered later in the exchanges section
of this video here's a sales order from
a customer for three separate items a
shirt a snowboard and some climbing
trousers they want to return the
climbing trousers for a full refund but
they're going to keep the shirt in the
snowboard so what we do is we find our
way to the sales order either using
their name or an order reference we then
take the item that we want to return and
then clone to sales credit that creates
a new sales credit which you can see by
the SC at the start of the order
reference and links it to the original
Parent sales order the price the
customer paid is being brought through
here and what we want to do is make a
refund of that amount at this point
you're still on the phone to the
customer so it's a good idea to capture
any extra information that might help
prevent more returns like this in the
future and what I've done is I've
actually created a custom field tab
called returns with a number of fields
within it reason for return let's say it
was carrier damaged any notes that you
might want to take from the customer and
then later your warehouse will fill in
this field which is when the package was
actually opened let's save changes to
that sales credit and then send an email
to the customer to tell them what to do
next so click email / print and this
opens by default the credit note
template which is not what we want I've
actually created an extra template
called RMA so let's choose that which is
instructions for the customer we'll
email this to them where they can see
the returns authorisation the data which
was issued the reason for return that
custom field we just chose the original
sales order reference the product
they're returning and then a section at
the bottom that they can cut out and
attach to the outside of the package
this again contains our sales credit ID
this makes it much easier for our
warehouse team to deal with this package
when it comes in so let's email this off
which takes us back to the sales credit
screen I've created some statuses to
help us see we're in the process this is
so here's one called awaiting goods and
let's just choose that this means that
other staff can see that I've sent this
and we're waiting for the goods to come
back but sure while later the package
will arrive at your warehouse your White
House team will need to find the sales
credit and you can just put the sales
credit reference in the quick search box
at the top right then what they need to
do is check the goods and decide what to
do with them you need to click receive
inventory and here's where you're
presented with a number of options the
first is to make these goods available
for sale in the warehouse of your choice
and that'll put it straight back into
stock the second option is to write off
these items which is going to bring them
back into stock and then immediately
write them off again and then the third
option is to quarantine the items which
puts them onto a screen called inventory
in transit which you then release into
stock later in this example let's just
write off the items and let's just say
that they're damaged this marks the
sales credit has fully received so all
inventory items have been dealt with
they've actually been written off as
well so they don't appear in stock you
can see the two inventory transactions
that have just been made on the
inventory audit trail so here's one
that's been put into stock and then
immediately removed again they both have
got the same order reference and the
little three here indicates that it's a
sales credit the general ledger contains
two accounting transactions that reflect
those inventory movements these both
cancel each other out so there's no
change to your profit loss or balance
sheet because you've already counted the
cost of those goods when you sold them
to complete the process we need to
decide what to do with the funds or the
finance in this example what I want to
do is refund the customer so I've
created an order status here called do
refund because typically my warehouse
staff don't have permission to make
payments back to the customer so we'll
save that and then another staff member
will pick up the refund what they'll do
is they'll find all sales credits due
for refund they'd go into the payment
system make the refund and then in
Brightpearl click do refund choose the
bank account from which refunding and
then allocate payment the
final step is to credit the sales credit
that completes all the accounting
entries needed and updates the status of
the credit to the one you've chosen in
your settings under sales credits
workflow now what we're going to do is
receive goods back from a customer but
this time we're going to send them
replacement items so this customer Joe
towns end has placed an order for a red
bobble hat in size large however he's
decided that he doesn't want the large
he wants the medium so let's create a
sales credit for the large will fill out
the custom field so that the team knows
why this is going to come back and let's
go customer error Save Changes email the
RMA form off and then update the credit
to awaiting goods depending on how you
run your business you might choose to
send the new items out straight away
without waiting for these ones to come
back and in that case would create a new
sales order right away if the new goods
are exactly the same price is the old
goods which you could do is you could
actually zero out the price on both the
sales credit and the new sales order
alternatively you can leave the prices
as they are and they'll cancel each
other out if they're the same price so
let's create a new order for Joe add the
medium bubble hat and would save the
order and fulfill it as normal once it
was fulfilled and shipped would invoice
it which puts the three-pound balance on
the customer's account we're not going
to take payment from him because we're
going to allocate the funds from the
sales credit if we go along to the
orders mini tab we can see that there's
actually the sales credit awaiting goods
for this particular customer so when the
goods arrive we choose what we want to
do with them and let's say in this
particular example which is going to
restock them and then finally we hit
credit which puts a minus three dollars
on the customer account and takes his
accounting balance down to zero what
we're going to look at now is the
concept of quarantine so that's
receiving inventory but not putting it
straight back in stock so maybe you need
to check it or repair it here's a tails
credit and the customer wants to return
dale bike hub what we'll do is click
receive inventory choose to quarantine
the items and then receive this marks
the sales credit as all received and you
can carry on just as normal to refund
any payments and it puts the inventory
into a screen called inventory in
transit which you can get to from this
link or from products menu each
warehouse has got its own quarantine
location and the warehouse it's received
into is the one on the sales credit this
inventory does not show on any stock
reports it only shows on the inventory
in transit an inventory audit trail as
soon as you've received the goods into
quarantine an accounting transaction is
made for the cost price of those goods
based on the cost price list that's
going to increase your stock or
inventory which is a debit and decrease
or credit you cost of goods sold which
is actually going to increase the profit
you report what you need to do when you
put them back into stock is to filter
this report by a certain warehouse even
if you've just got the one warehouse
then select the items and release them
into stock if you've got multiple
concurrent locations set up then
Brightpearl will ask you where you want
to put the items if you don't have
multiple concurrent location it'll just
put the items in the default location
for that product so we've covered a lot
of ground in this video for more
information see our documentation at
bright pearl calm / support and that
takes us to the end of the video all
about refunds and exchanges