On account returns and exchanges for Retail POS (X-Series) - Xero customers

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If you're a retailer who sells a lot of items at wholesale and uses Xero, you may want to post returns to a customer's Xero account balance so that this customer's account balance in Xero is updated with the return.

To do this, you must use the On account payment button when processing a return, exchange, or negative sale:

  1. First, find an existing sale to process the return or add the products to a new sale as a negative quantity. Ensure that you have added the correct customer to the sale. This customer must be linked to Xero.

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  2. Click on the red Pay button.

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  3.  

    Select On account.
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  4. Select Complete sale. This return will then appear as a credit note against the customer in Xero.

How is this different from store credits?

Store credits are posted to Xero as part of register closure invoice and get posted to the accounts that you have mapped in your Xero mapping screen in Retail POS.

Returns and exchanges that are paid as On account are posted to Xero as a credit note that is created against a customer, similar to how an invoice is created against a customer when a standard On account sale is made. The credit note can then be allocated to an outstanding invoice in Xero and reduce the customer's balance in Xero.

When should I use the on account payment option for returns and exchanges?

You will use this process if you are using Xero as the master of outstanding customer balances. This is common if you are a wholesale retailer who sells large items on account and also has returns.

If Retail POS is the master of all outstanding customer balances, you may instead wish to credit the customer with store credit. This store credit will not be posted to the customer account in Xero as a credit note, and therefore won't be placed on the customer's balance in Xero.

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