In the retail world, orders and cancellations happen every day. But what if you're confronted with a situation where a customer has initiated an order, made an initial partial payment, and then decided to cancel the purchase? In this post, we'll find out a more effective approach to handling such situations in Neto.
Let's say a customer places an order with a total value of $50. They only pay $20 upfront, leaving a balance of $30 as "Amount Owed." A few days later, the customer changed his decision and decided to cancel the order, requesting a refund.
Here's how you can navigate this scenario efficiently, ensuring that your inventory remains accurate:
1️⃣ Navigate to the Order
First, locate the order that requires a refund. You must add an internal note stating that the order was never physically shipped and was canceled at the customer's request. To edit the order and add an internal note, you can follow the instructions in this article: Editing a Sales Order
2️⃣ Approve, Pick, Pack, and Dispatch
Even though the order is being canceled, you must still go through the process of approving, picking, packing, and dispatching the order. This ensures that credits are assigned correctly. You can find detailed steps in this article: Approve, Pick, Pack, and Dispatch
3️⃣ Create an RMA
Next, it's time to create a Return Merchandise Authorization (RMA) for this order using the full order amount of $50. The RMA process helps track returns and ensures proper crediting. Follow the instructions in this help article to create an RMA: Creating an RMA
4️⃣ Issue a Partial Refund
After creating the RMA, issue a refund, but only for the paid amount of $20. This step is vital for maintaining records since it ensures that you only refund the amount paid by the customer. You can find detailed steps in this article: Refund a Customer
5️⃣ Apply for Available Credit
Return to the original order. At this point, the customer will have $30 available in credit due to the earlier refund. Use this credit to pay off the original order fully, ensuring that there is no outstanding balance.
That’s how you easily tackle this situation by following this process to ensure your inventory is not hampered and the customer is satisfied.
🔔 It's worth noting that RMAs do not refund reward points used in the original purchase back to the customer. Instead, the RMA adds the value as a credit to the customer's account. If you need to refund reward points, follow the steps in this article: Reward Points Refund
🌈 How to minimize cancellations of partially paid laybys?
Partially paid laybys are a smart retail tactic that works for both customers and businesses. However, it is important to plan it to avoid cancellations and maintain a successful layby program.
- Clear Layby Policies: Establish transparent terms and conditions upfront, including payment deadlines and cancellation fees, to prevent misunderstandings.
- Streamlined Process: Make the layby process easy and convenient, both in-store and online, with various payment options to boost customer commitment.
- Flexible Payment Schedules: Allow customers to choose their payment frequency and adjust it as needed, accommodating different financial situations.
- Payment Reminders: Send reminders through email, text, or calls before due dates to help customers remember and make timely payments.
- Incentives for Completion: Reward customers who complete their laybys with discounts, promotions, or exclusive deals, motivating others to follow suit.
- Grace Period: Consider implementing a grace period for missed payments, offering extra time without cancellation fees, with clear terms.
- Open Communication: Be open to discussing alternative arrangements with customers facing difficulties, like extending the layby period or adjusting payment plans.
- Monitor Accounts: Regularly track and review layby accounts to spot potential issues early and offer assistance to customers facing financial challenges.
This workflow is considered the best practice for handling these specific order circumstances. Even though the order is being canceled, it still needs to be dispatched to ensure that the credits are assigned correctly, which is vital for accurate record-keeping.
