Sales Return
Also called: customer return, sales returns
What is Sales Return?
A sales return is stock a customer returns after billing, whether damaged, wrong or simply unwanted. It reduces net sales, brings the goods back into stock, and reverses the tax charged through a credit note.
Why Sales Return matters
Returns handled informally leave three things wrong at once: overstated sales, understated stock and GST paid on revenue you did not keep.
Sales Return formula
Return rate % = Value of returns ÷ Gross sales × 100
Track it by product to find quality or description problems.
How Sales Return works in practice
Issue a credit note against the original invoice, take the goods back into stock at cost, and separate resaleable returns from write-offs so stock value stays honest.
Frequently asked questions
Yes, if a tax invoice was issued. That is what reverses the GST on the original sale.