The difference between return order and sales credit note

dear all,

Does anyone know what the diffrences between return order and sales credit note ?

Thanks in advance



In summary …

Returns order is a complete process for managing the returning of items, whereas a credit note is a direct return / refund that can bypass the returns process.

A credit note could be best described as an invoice reversal, or partial invoice reversal, whereas the returns order / process allows for more controls over how the item is to be handled with regards to crediting the customer, or not. It may be that the returned item should not be credited and subsequently returned back to the customer.

The returns process starts with a request for a return … this then leads into the ‘Arrival overview’ through to > ‘item arrival journal’.

In the arrival journal you need to add a disposition code, this disposition code dictates what will happen to the returns request, such as ‘return to customer’ or ‘ replace item and scrap return’. Once the journal has been posted, depending on the disposition code, a sales order of the type ‘returned order’ will be created ….

Hope this helps in general

This has been discussed several times, might be a difficult search but they are there :slight_smile:


Credit note is being used to reverse an invoice. It’s used when we want to reverse an invoice knowing that it was posted with some wrong amount.

Return Order is used to return the items to the respective vendors suppose of the defects in the items.

Thanks & Regards,

Parashar Banerjee.