What is a refund?

Three numbers move when a refund happens. Sales go down by the amount refunded. Cash or the original payment method goes down by the same amount. Stock goes up by the returned units, but only if they can be sold again. A faulty item that goes in the bin is a loss, not stock.

A beauty supply shop sells a bottle of shampoo for $24. The customer returns it unopened two days later with the receipt. The owner refunds $24 in cash. Sales for the month fall by $24, the shampoo goes back on the shelf, and stock rises by 1. If the bottle had leaked, the refund is still $24 but the stock is recorded as damaged, so the shop absorbs the cost of the bottle too.

A partial refund works the same way. If a customer returns 1 of 3 notebooks bought at $2.50 each, the refund is $2.50, not $7.50.

• Set a time limit, for example seven days with a receipt.
• State the form of refund: cash, the original payment type or an exchange.
• Check the item, and record whether it goes back to stock or is written off.
• Let the owner or a named person approve anything over an agreed amount.
• Keep the record. Never delete the original sale.

The refunds and returns guide covers the awkward cases, such as no receipt and sale items.

Refunds and voids are kept on record in the sales history, and a return can be logged in the stock ledger, so what happened to the item stays visible. Shopkeepa is pre-launch; join the early-access list to be told when it is ready.