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Refunds and Credits

Overview of the what refunds and credits are, when to use them, and how to process them

  • Definitions
    • Refund: A reversal of a charge placed on a customer bank or credit card that returns funds collected on an order. 
    • Credit: A reversal of an invoice generate by an order.  Credits can be applied to an outstanding customer balance at the discretion of that customer.  Credits can only be issued to a customer that is set up on terms.
  • Golden Rule
    • No refund or credit should be processed unless a vendor has confirmed in writing that an order is cancelled.  If a vendor invoice is present, a credit memo must be recorded prior to issuing the customer credit or refund.
  • Refund and Credit causes
    • Customer returns
    • Damaged goods
    • Out of stock/backorders with no substitution
    • Customer cancellations
    • Service failures
  • Issuing credits and refunds
    • Credits and refunds are entered via the same process, any minor differences will be noted
    • Proceed to the backend order page 
    • Locate the order that needs the refund or credit and click the order id
    • The "Transactions" section will show if the reversal will be a credit or refund
      • Refunds will display a transaction id, show "Capture" under type, list the payment method, and have a link marked "Refund"
      • Credits will display the original invoice number, customer name, list "Customer Invoice" as payment method, and have a link marked "apply credit"
    • After satisfying the Golden Rule click either "Refund" or "apply credit"
    • The following screen will show the line item details for all items showing base price, price with PP fees, price with tax, any payment fees, and a total
    • Select all line items that require a credit or refund 
      • Adjust "Qty" to match what was credited by vendor
      • Select type
        • Full Refund - full amount including taxes and fees to be refunded
        • Goodwill - Partial refund usually due to service failure or price fluctuations
        • Restocking Fees - If vendor recouped part of the credit for restocking purposes
      • Select Reason
        • Backordered - Item out of stock
        • Buyer’s Remorse - Not what the customer wanted or expected
        • Data Inaccurate - Item was not listed correctly or did not align with the item description
        • Defective - Item not working
        • Discontinued - Item no longer available from the vendor
        • Excess Item - Additional units were sent due to a vendor error
        • Goodwill - Utilized for partial refunds related to service failure or requested price match from customer. When using this reason, adjust “Refund Type” to Goodwill as well
        • Missed Delivery Date -  Item not received within the confirmed ETA
        • Wrong Item - Vendor sent the wrong item number in error
      • Review all selections to ensure the projected refund or credit aligns with what was received from the vendor
      • Add a short note as to the reason for the credit or refund
        • Include any HubSpot ticket id so any agent can review full cirumstances
        • Any note added to a credit will not record on the order page
          • Copy the note after entry and then paste as an order note after the credit is issued.
      • Click "Apply"
        • If you are taken to an error screen instead of back to the order, contact Carla Byers for further assistance image (47)-1
  • The resulting credit or refund will now be listed under "Transactions"
  • Refunds along with any notes added under "Reason" will be listed as an order note
    • On credits, remember to add the reason as an order note
  • Users will received a notification of the refund/credit when issued
    • A physical credit memo is sent to a customer distribution list set on the customer page
      • Click "Edit"
      • Any email listed in "Invoices sent to" will receive the memo
    • You can also click the credit memo number to go to a page showing the line items involved in the credit
      • You can click "Resend" on this page to send out another copy of the memo to everyone on their distribution list