How to Create a Customer Credit
What Is a Credit?
Credit invoices allow you to give a customer credit that can be applied to a future outstanding invoice balance.
- Credits should only be created if the order has been completed, the customer has left, and/or the customer has already paid for the order. Otherwise, you can just edit the item quantities and prices directly on the original order.
- There are three types of item credits: restock, loss, and price adjustment. Each is explained in this article.
- Credits are recorded as sales orders. You can view them in the Sales Orders > Orders screen.
How to Create a Credit
- Open an existing sales order and press Create credit invoice.
In the credit creation panel, select the item or items you want to credit.
- Fill in the Quantity to Credit and adjust the Credit per Unit if necessary.
- Select the credit Type from the dropdown. Note that this only appears for inventory items - non-inventory item credits will always use type Restock.
- If you want to create a general credit not associated with a specific item, select the Credit to Total order checkbox and enter a Credit Total. This will create a non-inventory item credit that affects the customer's account balance but doesn't affect the performance of any lots on the order.
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Press Create credit.
Credit Types
Restock
Use a restock credit when:
- The customer is returning a product and you plan to resell it
What happens to inventory when using restock?
- Creating a restock credit adds the number of units credited back to the inventory item's available to sell quantity.
What happens to the customer?
- The customer will receive a credit on their Silo account, which can be applied to future transactions.
What happens to lot performance?
- Since the item is being restocked, lot performance will adjust as if the sale never happened.
Loss
Use a loss credit when:
- The customer is returning a product, and you do not plan to resell it.
What happens to inventory?
- Creating a loss credit does not impact units available in inventory.
- The units will be reflected in the Inventory > Waste report.
What happens to the customer?
- The customer will receive a credit to their Silo account, which can be applied to future transactions.
What happens to lot performance?
- All aspects of lot performance are impacted by issuing a loss credit, including units sold, and avg. price/unit, revenue total, profit total, profit %, and margin %.
Price Adjustment
Use a price adjustment credit when:
- The customer was charged an incorrect amount or you wish to discount an item
What happens to inventory?
- Nothing. Inventory remains the same.
What happens to the customer?
- They receive a credit on their Silo account, which can be applied to future transactions.
What happens to lot performance?
- All aspects of lot performance are impacted by issuing a loss credit, including units sold, and avg. price/unit, revenue total, profit total, profit %, and margin %.