Returns

Returns handle the reverse flow of goods — products coming back from a facility that received them or products being sent back to a supplier. OpenBoxes tracks returns separately from regular stock movements to maintain clear audit trails.

Types of Returns

Inbound Returns

Goods coming back to your location from a facility you previously supplied. Common reasons include:

  • Excess stock — The facility received more than they need
  • Expiring items — Products approaching expiry that won't be used in time
  • Recalled products — Items identified for recall by the manufacturer
  • Damaged goods — Products damaged in transit or storage
  • Wrong items sent — Fulfillment error from the original shipment

Outbound Returns

Goods you are sending back to a supplier. Common reasons include:

  • Defective products — Items that do not meet quality standards
  • Wrong items received — Supplier shipped incorrect products
  • Expired on arrival — Products already expired or too close to expiry when delivered
  • Contract returns — Returning unsold stock under consignment or return agreements

Creating an Inbound Return

When a downstream facility needs to return stock to you:

  1. Navigate to Returns > Create Inbound Return
  2. Select the origin (the facility returning goods)
  3. Optionally link to the original stock movement that delivered the goods
  4. Add return line items:
    • Select the product
    • Enter the quantity being returned
    • Specify the lot number and expiry date
    • Select a return reason
  5. Save the return

The return follows a receiving workflow similar to inbound stock movements. When the goods arrive, receive them as you would any other inbound shipment.

Tip: Always link returns to the original shipment when possible. This makes it easy to trace what was sent, what came back, and calculate net quantities delivered.

Creating an Outbound Return

To return goods to a supplier:

  1. Navigate to Returns > Create Outbound Return
  2. Select the supplier you are returning to
  3. Link to the purchase order if applicable
  4. Add items being returned:
    • Select the product
    • Enter quantity and lot details
    • Select the return reason
    • Note any credit or replacement expectations
  5. Save and process the return

Outbound returns deduct the returned items from your inventory when shipped and create a record for credit tracking.

Return Reasons

OpenBoxes uses standardized reason codes for returns:

Reason Description
Excess More stock than needed
Damaged Physical damage to product or packaging
Expired Product past or near expiry date
Recalled Manufacturer or regulatory recall
Wrong Item Incorrect product sent or received
Quality Issue Product fails quality inspection

Reason codes are required on all returns. They feed into reporting so you can track patterns — for example, if a particular supplier frequently ships damaged goods.

Credit Returns

When returning goods to a supplier for credit:

  1. Create the outbound return as described above
  2. Flag it as a credit return
  3. Note the expected credit amount based on the original purchase price
  4. After the supplier confirms the credit, link it to the corresponding invoice adjustment

Credit returns help reconcile your accounts payable. The return record serves as documentation for the credit memo.

Tip: Follow up on credit returns proactively. Without a system to track expected credits, supplier credits often go unclaimed, which is money lost.

Return Workflow

The lifecycle of a return follows these steps:

  1. Created — Return initiated with line items and reasons
  2. Approved — Authorized by a manager (if approval workflow is enabled)
  3. Shipped/In Transit — Goods are on their way (outbound returns to supplier)
  4. Received — Goods arrived at the return destination
  5. Completed — Return fully processed, inventory and records updated

For inbound returns, the receiving location follows the standard receiving and putaway process. Returned items go back into available inventory unless they are damaged or expired.

Stock Adjustments from Returns

Returns may require inventory adjustments:

  • Returned items in good condition — Added back to available stock at the receiving location
  • Returned items expired — Received and immediately written off with an expiry adjustment
  • Returned items damaged — Received into a quarantine bin location pending disposition

The decision on how to handle returned stock depends on the condition of the goods and your organization's policies.

Tip: Create a designated "Returns" bin location for incoming returns. This gives you a holding area to inspect returned goods before putting them back into general inventory or writing them off.

Best Practices

  • Process returns promptly — Unprocessed returns distort inventory accuracy at both locations
  • Require reason codes — Without documented reasons, you cannot identify systemic issues
  • Inspect returned goods — Do not assume returned items are in good condition; always verify before restocking
  • Track return rates — High return rates from a specific facility may indicate over-ordering or storage problems
  • Reconcile credits — Match supplier credits to outbound returns to ensure you are fully compensated
  • Keep the original shipment link — This connects the return to the full transaction history for auditing