What’s on the credit note for returned goods
Extra fields on this template: Original invoice, Return no..
| Product | Qty | Rate | Amount |
|---|---|---|---|
| Office chair, mesh, blackReturned unopened | 4 | $189.00 | $756.00 |
| Monitor arm, dualReturned, box opened, unused | 2 | $75.00 | $150.00 |
| Restocking fee, 10% of opened itemsDeducted from the credit | 1 | -$15.00 | -$15.00 |
| Subtotal | $891.00 | ||
| Sales tax (7%) | $62.37 | ||
| Total credit | $953.37 | ||
Example prices in US dollars. Replace them with your own; in the generator, any currency works.
Recording a sales return
- Agree the return and give it a return number (RMA or RA), so the goods arriving can be matched to the customer.
- Check what comes back: quantities and condition. Credit only what you received.
- Issue the credit note for the returned lines, at the prices charged on the invoice, and the tax on them.
- Deduct any restocking fee as its own line, if your terms of sale allow one.
- Refund or apply the credit, and say which on the credit note.
Restocking fees and partial returns
A restocking fee goes on the credit note as a negative line, so the customer sees the full value of the goods and what you kept. Charge one only if it was in your returns policy when the customer bought: a fee announced after the fact invites a dispute. Some states regulate restocking fees or require them to be disclosed at sale, so check your state’s consumer rules.
For a partial return, list only the items that came back. If a set was sold at a bundle price, credit the share of the price that relates to the returned item, and say how you worked it out.
Frequently asked questions
Who issues the credit note for returned goods?
The seller. The buyer may send a debit note or a return request first, but the credit note from the seller is what reduces the invoice.
Do I credit the sales tax on returned goods?
Yes, if you charged tax on them. Credit it at the rate on the original invoice, so the tax you reported on the sale is reduced.
What if the goods come back damaged?
Credit what your returns policy allows. If the customer damaged them, you can credit a reduced amount or none; explain the reason on the credit note.