Returns, Refunds, & Exchanges

Essential Points

• Returns are done on a new Invoice that is created from the original Invoice in both the POS screen and the Browser
• Returns are essentially Invoices with negative quantities, and refunds are essentially negative payments
• Same day credit card refunds must be done as “Voids” for the entire amount if the original payment remains unsettled
• You must have the original reference number and card number to process a credit card refund through LightSpeed
• Exchanges are essentially return invoices that also sell Products
• LightSpeed does not store credit card information
• All credit card batching is handled by the merchant provider.  It is not handled through LightSpeed.

Introduction

LightSpeed makes it simple to process your returns, refunds, credits, and exchanges, taking what can often be a complicated series of cross-references and making the process rapid and clear.

Returns are done much the same way in a Browser Invoice as in the POS. 

Returns

Point of Sale

1. Click the Documents icon in the search bar, and either scan the barcode on the printed copy or enter the document ID. Select the original Invoice and click the Return button at the bottom of the POS. 
2. The Products from your original document will be added to a new Invoice, but with negative quantities, which will bring the Product(s) back into your stock once the Invoice is saved. Delete any Products you do not wish to return from the Invoice before saving by selecting it  and hitting your Delete key or by clicking the Delete icon at the top right of the POS screen. If you are returning a serialized Product, you must enter the serial number as it appeared on the original Invoice. 
3. Click Check Out. The Products have now been returned into your available inventory. See the Refunds section below for information on how to refund the Customer their money, or the Credit section if you want to leave an outstanding credit in the Customer’s profile that they can use later on a future Invoice. 

Browser

1. In the original Invoice, click the Return button at the bottom of the window.
2. You will be asked if you want to process a Return, or, if you have selected specific Products, whether you wish to process a return for the entire Invoice, or only the Products you’ve selected. Click OK.
3. The Products you’d selected will be added, with negative quantities, on a new Invoice. Make any necessary changes, and click Save, which will bring the inventory back into your available stock. If you are returning a serialized Product, you must enter the serial number as it appeared on the original Invoice.

If you are processing the return in the back end, you can use an Apple key/mouse-click combination to select one or more Products. Clicking the Return button at that point will result in your being asked if you want to process a return for the entire Invoice, or only for the selected item(s).

Refunds and Voids

Refunds are processed as negative values in the Payments section of the Invoice on both the POS screen and the back-end Browser.  Refund payments are processed in the same way as regular payments. That is, if the return Invoice balance is negative $100, and the payment is negative $100, the resulting balance will be zero. 

IMPORTANT: Credits cannot be saved to a Walk-In Customer. Therefore, on the Invoice processing the credit, you must create a Customer card to which the credit will automatically be applied, and this Customer card must be used on any subsequent sales documents where you wish to apply the credit on file.  

If you are processing credit card payments through LightSpeed, refunds require the reference number generated during the original transaction.  Payment Voids are required when you are processing credit card transactions through LightSpeed and the original payment has not yet settled between the payment processor and your account.  Voids must completely cancel the original transaction and return all Products, and a third Invoice must be created to start the sale from scratch.   If the original payment has settled, you may process a refund for a full or partial amount, and return only those Products that are physically being returned. 

The steps for a standard refund in both the POS and Browser are;

1. Once the return Invoice has been created (as outlined above), choose the Payment Method you are using to refund the Customer. In most cases, this will be the same as the Payment Method used on the original Invoice. 
2. Enter a negative value that reflects how much you will be refunding your Customer. If you enter a value that is less than the total of the Invoice, the Customer will have a credit remaining on their account. Important: Customers must have a profile in order to track any outstanding credits (or balances) - Walk In customers will not track these credits and balances. (See below for more information)
3. Click Save to save the Invoice. Any remaining balance or credit will appear on the Invoice.   

The steps for an internal credit card refund (through payment gateways such as Authorize.net or HPS) are;

1. Before creating the return Invoice, you must have in hand the original payment’s reference number.  You must also have the customer’s credit card number. 
2. Create the return Invoice as outlined above. 
3. Click the credit card Payment Method used for the original transaction. In the Browser, you will have to choose the payment to refund.  Click OK.  Select whether you are processing a Void or a Refund (see above).  Confirm the amount, then swipe or enter the credit card number of the original payment and click Process.   A new reference number will populate for the transaction. 
4. In the POS, select the payment method, swipe/enter the card number.  Click the Advanced Options arrow and enter the original reference number.  Click the Void or Refund button to process. 

Refunds From Deposits

Refunds that are processed from Deposits (on Orders, SROs, and Quotes) should be processed as a negative Payment on an Invoice, along with a note, which leaves a paper trail for the transaction. Create an Invoice with no Products, save it, and on the Payment screen, select the Method of Payment that will receive the credit. Swipe the customer’s credit card, and enter a negative value to process a refund. You must have the customer’s credit card number for this procedure. 

To process a refund from deposit, please follow these steps: 

1. Create a new Invoice and add the Customer who has the initial deposit. Save the empty Invoice. 
2. Click the Payments tab
3. Click the green Apply Credit button
4. In the resulting window, select the sales document that took the initial deposit
5. Change the Amount to Apply from 0.00 to the amount of the deposit you're refunding (a positive value), and click OK
6. Click the Payment Method you wish to refund the Customer with
7. Confirm that the value is negative. If refunding by credit card, enter the card number. Click Process. 

The refund should now be complete. 

Credits

If a Customer returns a Product, but they do not want a refund, you can leave the credit on their account simply by completing the return Invoice without applying a refund payment to it. This credit will remain on their account until their next transaction, at which time it can be applied to the new sales document in the Payments section.

Credits cannot be saved to a Walk-In Customer. Therefore, on the Invoice processing the credit, you must create a Customer card to which the credit will automatically be applied, and this Customer card must be used on any subsequent sales documents where you wish to apply the credit on file. 

Exchanges

Processing an exchange in LightSpeed’s POS screen or back end Browser Invoice is done in the same way. Create the return Invoice as explained above, with negative quantities for any Product(s) being returned. Add the Product(s) that the Customer wants to purchase as additional line items. The balance of the Invoice will be a negative or positive value, resulting in your Customer being owed a refund or a credit, or in you being owed payment by the Customer. 

Voided Invoices

If you create a new Invoice that you do not wish to complete (the Customer changes their mind, for example), and you do not wish to delete the entire Invoice, you can void the Invoice. First, you must remove all Products on the Invoice, and save the changes. Then, under the Edit menu, choose Void Invoice. A red V will appear in the corner, and now the Invoice cannot be modified. A voided Invoice cannot be un-voided, unless it is posted and unposted (see Posting article).