Returns (credit & debit notes)

Sales return (credit note)

In Rowdx

1. Sales
2. Credit notes (returns)

or New → Sales return

Use it when a customer returns goods, when you give a discount after invoicing, or to correct a submitted invoice already sent to ZATCA.

1. Open the original sales invoice.
2. Click Create → Return / Credit Note.
3. Items are copied with negative quantities. Adjust them to what was actually returned and remove the rest.
4. Save and submit.

Result:

• Revenue and VAT payable go down.
• The customer's balance goes down, or becomes a credit.
• Quantities return to stock (for stock items).

Refunding the customer

If the original invoice was paid and you want to refund, create a payment to the customer linked to the credit note. To keep it as a credit instead, it will be applied to future invoices through payment reconciliation.

Purchase return (debit note)

In Rowdx

1. Buying
2. Debit notes (returns)

or New → Purchase return

Same steps from the original purchase invoice: Create → Return / Debit Note. The supplier balance and input VAT go down, and quantities leave stock.

Why not just cancel the invoice?

Cancelling erases the invoice as if it never happened — only right for mistakes caught before it reached the customer or ZATCA. A return documents what actually happened on its date, which is what's required once a tax invoice has been issued.

Special cases

Returning part of an invoice

In the credit note, remove the lines that weren't returned and change the returned item's quantity to what actually came back. You can issue more than one credit note on the same invoice, and the system won't allow returning more than was sold.

A later discount without returning goods

The customer returned nothing but you gave a discount after the invoice (compensation for a delay, say): create the credit note from the invoice, untick Update stock, and enter the discount in the rate instead of the quantity. It reduces revenue and VAT without any goods coming back to the warehouse.

Return reason and e-invoicing

If your system is connected to ZATCA, the credit note is sent to ZATCA like the invoice, and a reason for issuing is required (return of goods, price adjustment, cancellation). Write it clearly; it's part of the document sent.

Cashier returns

POS returns are done from the cashier screen itself: find the receipt and return the items, and the amount is refunded from the shift's cash. Details in Payments, receipts & returns.

Where do I see returns?

• The Credit notes list, or the sales invoice list filtered by Is return = Yes.
• The Sales register report shows them as negative values, so net sales show.
• In the VAT return they're deducted from output VAT in their period automatically.

Common mistakes

• A standalone credit note (not from the original invoice): loses the link to the invoice, the invoice status doesn't update, and ZATCA won't accept it without a reference. Always create it from the invoice.
• Cancelling an invoice already sent to ZATCA: its effect at ZATCA isn't cancelled. The right way is a credit note.