How do returns work?
As an example - When a customer orders a camera from your Amazon store for $100, ConnectBooks inserts an Invoice into your Quickbooks file: one camera sold for $100 and deducts one item (camera) from the inventory.
If for some reason, the customer decides to return the camera. ConnectBooks creates a credit memo in your Quickbooks file to refund the sale of $100 and put the camera (item) back into inventory. Users should only use this process if the item is re-sellable, and therefore indeed an increase to sellable inventory.
What if the returned item is defective or broken? In this case, it shouldn’t go back into inventory. Or what happens if Amazon reimburses me for this product?
Returns are grouped into three categories:
Returns returned to inventory in sellable condition
Returns damaged - Amazon reimburses
Returns damaged and returned to inventory = seller loss
To have accurate inventory, we need to analyze each return based on its category.
By default, ConnectBooks processes all returns back into inventory.
If Amazon reimburses the seller for the return, then ConnectBooks creates a new invoice in Quickbooks as an adjustment sale for that item, which records the amount received for the reimbursement and deducts one piece from inventory.
For all other returns, ConnectBooks goes through these returns, and assesses whether they are in sellable condition or not.
If the returns are sellable, ConnectBooks doesn’t need to do anything.
If the returns are unsellable, ConnectBooks will deduct the item from your QB inventory by creating a zero-dollar invoice for the damaged item.