Absolutely. Below is a professional knowledge base article written for Bylon ERP System users. It is structured as a user manual and explains every field in detail for end users.

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Sales Return Management

Bylon ERP System User Guide

Overview

The Sales Return Management module is used to record, process, and manage products that customers return after a sale has been completed.

A sales return may occur for several reasons, including:

• The customer received damaged goods.

• Incorrect products were delivered.

• The customer received fewer or more items than ordered.

• The product was defective.

• The customer cancelled the purchase after delivery.

• Goods were returned under warranty.

• The customer no longer requires the product (subject to company policy).

When a sales return is processed, the system automatically updates inventory records, financial records, and customer balances where applicable. Depending on the return type, the system can also automatically generate a Credit Note, update stock levels, and prepare the transaction for accounting.

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How to Create a Sales Return

Follow the steps below to create a new sales return.

Step 1

Navigate to:

Sales Hub AI → Sales Return

This opens the Order Return Management page, where all customer return transactions are managed.

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Order Return Management

The Order Return Management page provides a centralized location for monitoring and managing all sales returns.

Users can:

• View existing sales returns.

• Search for returns using filters.

• Create new returns.

• Monitor processing status.

• Review return history.

• Export return records for reporting.

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Add Order Return

Click Add Order Return to create a new customer return.

The system opens the Create Order Return window where all return information is entered.

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Create Order Return

This screen captures all information required to process a customer return.

Each field serves a specific purpose.

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Order Return Number

The Order Return Number is the unique identification number automatically generated by the system for every return transaction.

Example:

SORX6NC31786128740

Purpose

The Order Return Number is used to:

• Identify the return transaction.

• Track the return throughout its lifecycle.

• Link the return to related documents such as Credit Notes and Stock Receipts.

• Assist with reporting and auditing.

This number is generated automatically and cannot normally be edited.

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Customer

Select the customer returning the goods.

Purpose

This field links the return to the correct customer account.

The selected customer determines:

• The sales orders available for return.

• Customer account balances.

• Credit Note ownership.

• Customer transaction history.

Always ensure the correct customer is selected before proceeding.

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Order Return Date

The Order Return Date indicates when the customer returned the goods.

Purpose

This date is used for:

• Return tracking.

• Inventory reporting.

• Financial reporting.

• Customer service history.

• Audit purposes.

In most cases, the system automatically fills the current date and time.

Example:

07/08/2026 21:52:20

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Sales Order

The Sales Order field allows users to select the original sales order from which the return is being made.

Purpose

This links the return directly to the original sale.

Once a Sales Order is selected, the system automatically retrieves:

• Products sold.

• Quantities sold.

• Selling prices.

• Taxes.

• Discounts.

• Customer details.

This eliminates the need to enter product information manually.

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Date Created

The Date Created field records when the return transaction was created in the ERP system.

Purpose

It provides:

• A complete audit trail.

• Historical reporting.

• Transaction tracking.

• User accountability.

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Return Type

The Return Type determines whether the customer is returning all products or only some of them.

Two options are available.

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Partially

A Partial Return means that only some of the products or quantities from the original sales order are being returned.

Example

Original Sale

• Laptop × 5

• Mouse × 5

Customer returns:

• Laptop × 1

Only one laptop is returned.

The remaining products stay with the customer.

The Credit Note is generated only for the returned quantity.

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Fully

A Full Return means that the customer is returning every product on the original sales order.

Example

Original Sale

• Laptop × 5

• Mouse × 5

Customer returns:

• Laptop × 5

• Mouse × 5

The entire transaction is reversed.

The system creates a Credit Note for the full order value and updates inventory accordingly.

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Returned Item Details

After selecting the Sales Order, the system automatically displays all products from the original transaction.

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Item

Displays the product being returned.

Purpose

Identifies the exact inventory item.

Examples:

• Desktop Computer

• Monitor

• Printer

• Keyboard

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Quantity

Displays or allows editing of the number of units being returned.

Purpose

Specifies how many units should be returned to inventory.

Example

Sold:

10 Keyboards

Returned:

3 Keyboards

Only three units are processed as returned.

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Rate

The Rate represents the selling price of one unit of the product.

Purpose

Used to calculate the refund or Credit Note amount.

Example

Rate:

KES 5,000

Returned Quantity:

2

Refund Value:

KES 10,000

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Tax

Displays the tax applied to the product during the original sale.

Purpose

Ensures that taxes are correctly adjusted when processing the return.

If VAT or another applicable tax was charged during the original sale, the system automatically recalculates the tax adjustment based on the returned quantity.

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Subtotal

The subtotal is the product value before discounts and taxes are applied.

Formula

Subtotal = Quantity × Rate

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Discount (Money)

Displays any monetary discount applied to the returned product.

Purpose

Ensures that customers are credited only for the amount originally paid after discounts.

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Total Money

Displays the final amount to be credited for that line item after taxes and discounts have been applied.

This value contributes to the total Credit Note amount.

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Return Totals

The system automatically calculates:

• Subtotal – Total value of returned items before discounts and taxes.

• Total Discount – Combined discounts applied to all returned items.

• Total Money – Final return value after all calculations.

These totals are generated automatically based on the selected Sales Order and return quantities.

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Return Reason

This field explains why the customer is returning the products.

Examples include:

• Damaged item

• Wrong product supplied

• Manufacturing defect

• Customer cancellation

• Incorrect quantity delivered

• Product not functioning

• Warranty claim

Purpose

The return reason:

• Helps customer service understand the issue.

• Supports management reporting.

• Identifies recurring product quality issues.

• Assists in supplier claims and audits.

Providing a clear and accurate reason improves reporting and helps the business identify trends in product returns.

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Admin Note

The Admin Note is an internal comment field intended for staff use only.

Purpose

It allows employees to record additional information that may be useful during review or auditing.

Examples include:

• Product inspected and approved for return.

• Packaging damaged upon receipt.

• Awaiting supplier confirmation.

• Customer approved for goodwill replacement.

• Return authorized by branch manager.

Unlike the Return Reason, Admin Notes are intended for internal use and are not typically visible to customers.

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Close

Click Close if you wish to exit the Sales Return screen without saving the transaction.

Use this option when:

• You opened the screen by mistake.

• You need to cancel the return process.

• You want to review information before creating the return.

Any unsaved information will be discarded.

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Save & Auto-Process (Automatic)

After all required fields have been completed, click Save & Auto-Process (Automatic).

This action saves the return and automatically processes all related transactions.

The system automatically:

• Saves the Sales Return record.

• Validates the entered information.

• Creates the corresponding Credit Note.

• Updates customer balances where applicable.

• Updates inventory quantities for returned items.

• Records stock movements.

• Creates accounting entries (if configured).

• Links the return to the original Sales Order.

• Updates transaction history.

• Makes the return available for reporting.

Because these processes are automated, users do not need to manually create each related document, reducing errors and improving efficiency.

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CRM & Sales → Credit Note

A Credit Note is an official financial document issued to reduce or reverse part or all of an invoice after goods have been returned or billing adjustments are required.

Credit Notes ensure that both customer accounts and company financial records remain accurate.

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Credit Note Search Filters

The Credit Note module provides filters to help users quickly locate specific Credit Notes.

Start Date

Select the earliest Credit Note date to include in the search.

Purpose: Limits the search to Credit Notes created on or after the selected date.

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End Date

Select the latest Credit Note date to include in the search.

Purpose: Displays only Credit Notes created up to the selected date.

Using Start Date and End Date together allows users to search within a specific reporting period.

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Branch

Select the branch where the Credit Note was created.

Purpose:

• View Credit Notes for a specific branch.

• Simplify branch-level reporting.

• Monitor branch-specific returns.

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Customer

Filters Credit Notes for a particular customer.

Purpose:

• Review all credits issued to one customer.

• Resolve customer account queries.

• Verify outstanding credits.

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Users

Displays Credit Notes created by a specific ERP user.

Purpose:

• Audit staff activities.

• Monitor user performance.

• Investigate transaction history.

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Driver

Filters Credit Notes associated with a specific delivery driver.

Purpose:

• Track delivery-related returns.

• Investigate delivery issues.

• Generate driver performance reports where applicable.

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Opening a Credit Note

Each Credit Note is identified by a unique number, for example:

CN-2026/000014

Clicking the Credit Note Number opens the complete Credit Note record.

The Credit Note screen contains several tabs that provide detailed information about the transaction.

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Credit Note Tab

This tab displays the complete Credit Note document.

It includes:

• Credit Note Number

• Customer information

• Company information

• Return reference number

• Products returned

• Quantities

• Prices

• Taxes

• Total credit amount

• Current status (Open or Closed)

This serves as the official record of the credit issued to the customer.

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Invoices Credited Tab

The Invoices Credited tab shows all invoices that can receive part or all of the available credit from the Credit Note.

It allows users to apply the credit to reduce outstanding invoice balances.

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Refunds Tab

The Refunds tab displays any cash or bank refunds that have been processed against the Credit Note.

It records:

• Refund amount

• Refund date

• Payment method

• Processing status

This helps finance teams track money returned directly to customers.

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Reminders Tab

The Reminders tab allows users to create or view reminders related to the Credit Note.

Examples include:

• Follow up with the customer.

• Await manager approval.

• Verify returned goods.

• Contact supplier regarding defective products.

This helps ensure that important follow-up actions are not overlooked.

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Open Status

The Open status indicates that the Credit Note is active and still has an available balance or pending action.

A Credit Note may remain open when:

• It has not yet been fully applied to invoices.

• A refund has not yet been completed.

• The available credit balance has not been fully used.

Once the Credit Note has been fully utilized or closed according to company procedures, its status changes to Closed.

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Apply to Invoice

The Apply to Invoice feature allows users to use the available credit from a Credit Note to reduce or settle outstanding customer invoices.

How to Apply a Credit Note to an Invoice

1. Open the required Credit Note by clicking its Credit Note Number.

2. Click the Apply to Invoice button.

3. The system displays a list of all eligible customer invoices.

4. Review each invoice, including:

   • Invoice Number

   • Invoice Date

   • Outstanding Amount

   • Current Balance

5. In the input field next to the desired invoice, enter the amount of the Credit Note to apply.

6. The system automatically calculates:

   • Amount to Credit – The total amount being applied to the selected invoice(s).

   • Remaining Amount – Any unused balance left on the Credit Note after the allocation.

7. Verify that the allocated amounts are correct.

8. Click Apply to complete the process.

What Happens After Clicking Apply

When the Apply button is selected, the system automatically:

• Applies the specified credit amount to the selected invoice(s).

• Reduces the outstanding balance of each affected invoice.

• Updates the remaining balance on the Credit Note.

• Records the transaction in the customer's account history.

• Updates accounting records to reflect the credit allocation.

• Maintains a complete audit trail showing which Credit Note was applied to which invoice and by whom.

This process ensures that customer balances, invoices, and financial records remain accurate and fully synchronized throughout the ERP system.

Summary Process of Sales Return

Follow the steps below to successfully create and process a Sales Return in the Bylon ERP System:

1. Navigate to Sales Hub

   • From the main menu, go to Sales Hub.

2. Open Sales Return

   • Click Sales Return to access the Order Return Management page.

3. Add Order Return

   • Click Add Order Return to create a new sales return transaction.

4. Select the Customer

   • Choose the customer returning the goods. This links the return to the correct customer account and displays the customer's eligible sales orders.

5. Select the Sales Order

   • Select the original Sales Order associated with the returned items. The system automatically loads the products, quantities, prices, taxes, and discounts from the selected order.

6. Select the Return Type

   • Choose the appropriate return type:

     • Partial – When only some items or quantities are being returned.

     • Full – When all items from the sales order are being returned.

7. Select the Items to Return

   • Review the list of items loaded from the Sales Order and select the products being returned. Confirm or adjust the return quantities where necessary.

8. Enter the Return Reason

   • Provide a clear reason for the return, such as damaged goods, incorrect item delivered, defective product, or customer cancellation. This information is important for reporting, auditing, and future reference.

9. Save and Auto Process

   • Click Save & Auto Process (Automatic).

   • The system automatically:

     • Saves the Sales Return.

     • Updates inventory.

     • Generates the Credit Note.

     • Updates customer records.

     • Records the stock movement.

     • Updates financial records and transaction history.

10. Open the Credit Note

    • Navigate to CRM & Sales → Credit Notes.

    • Locate the generated Credit Note and click the Credit Note Number (for example, CN-2026/000014) to open its details.

11. Apply the Credit Note to an Invoice

    • Click Apply to Invoice.

    • Select the invoice(s) you want to credit, enter the amount to apply (if required), and review the calculated Amount to Credit and Remaining Amount.

12. Apply the Credit

    • Click Apply to complete the process.

    • The system updates the selected invoice(s), reduces the outstanding balance, updates the remaining Credit Note balance, records the transaction in the customer's account, and maintains a complete audit trail.

Process Flow

Sales Hub → Sales Return → Add Order Return → Select Customer → Select Sales Order → Select Return Type → Select Items → Enter Return Reason → Save & Auto Process → CRM & Sales → Credit Notes → Open Credit Note → Apply to Invoice → Select Invoice → Apply

This workflow ensures that customer returns are accurately processed, inventory is updated, Credit Notes are generated, and customer invoices and financial records remain synchronized throughout the Bylon ERP System.