Overview:
This guide explains how to handle returns and issue refunds using Webgility Desktop. Whether your customer is unsatisfied with a product or there's an issue with the order, Webgility Desktop provides you with a streamlined way to manage return requests and process the corresponding refunds efficiently.
By following this process, you can ensure a smooth and consistent experience for your customers, maintain inventory accuracy, and stay aligned with your company’s return policies.
Before you proceed, it's important to understand the difference between returns and refunds.
- Returns: A return is when a customer returns an item that they purchased from your online store. You can send return instructions to the customer and provide a return shipping label. After you receive (restock) and inspect the returned item, you can issue a refund when applicable. (Returns do NOT involve a transfer of money. Transfer of money is a part of the Refunds process).
- Refunds: A refund is when you send the full or part payment amount back to a customer who placed an order on your online store. Note: Refunds can be done at two levels on Shopify - 1.Item level: Here the refund is done against one or many items. 2. Order-level (or manual refund)-This refund does not have item information, it can be any amount refunded against an order.
Settings to configure for refund posting
In Webgility Desktop navigate to Connections then go to Accounting/POS/ERP and click on Sync Settings.
This will open the Posting settings window, click on the Order section on the blue left panel and select Posting Rules.
Here, check the box for the Credit memo and Automated refund posting options under the Enable related transactions section. This will enable the respective tabs on the top of this page for these settings.
Credit Memo
Here you can define the settings for Credit Memo such as A/R account, transaction class, sales rep, credit memo templates, and terms.
Automated Refund Posting:
Here, you need to select the default for refund posting as per your preference.
NOTE: If you are using Webgility Scheduler to automate order posting, you can check Post refund to automatically post the refund after it is downloaded.
You can either set Webgility to always void the posted order in QuickBooks for a refund order or create a credit memo or refund check.
If you choose to create a credit memo or a refund check, you will need to specify your QuickBooks Bank account to adjust the refund amount.
Posting refund as a line item
As an option, if you want to post a Refund as a line item for amount adjustments (where no qty has been returned by the customer or restocked on the store) from online store orders, then you can choose the option to download and record refunds as a line item in the orders you post.
In Webgility Desktop navigate to Connections then goto Sales Channel and click on Settings. This will open the Store Settings window.
Here, under Download Options, check the box Get refunds and record in and select the item in the dropdown where you would like to record the refund adjusted amount in QuickBooks.
For posting the refund amount as a line item, we recommend using a Non-Inventory Item from QuickBooks.
Processing Returns in Webgility Desktop
Before returns are visible in Webgility Desktop, they must first be initiated in Shopify. Here's how returns are managed within the Shopify admin:
Steps to Create a Return in Shopify
- Go to the order and click “Return”
- Select the item(s) and quantity to return.
- Complete return creation
- Click on Manage/Process return. Choose whether to restock the item(s) — this updates inventory.
Note: This does not issue a refund — it's only for tracking item movement.
How to enable the Returns and Refunds column in the Display Settings
Webgility Desktop supports a feature where you can choose which columns or fields appear in an Order list table, for personalization. This also includes the notifications for both Returns and Refunds.
- On the Dashboard, click the New Orders tab and then click on Display Settings (three dots in the bottom left corner).
- In the Display Settings dialog box, select RETURNS and REFUNDS by checking the box and then click Save. These columns are available in all three tabs (New Orders, Posted Orders and Archived)
Steps to process returns in your Accounting Solution
- Once you process the return on an order in Shopify, log in to your Webgility Desktop.
- Now when a return becomes available on any order, the next time you click on Check for New Orders, the RETURN column will be marked with a white check in blue background, indicating a return has been received for that order.
How to post a return.
To post a return, make sure the respective order has already been posted to QuickBooks, else you will receive an alert message prompting you to post the order to complete this action.
If the order is already posted to Quickbooks, then go to the order details view by double-clicking on the order, goto Return tab and click on Post Return.This will create a zero-amount credit memo, which will only capture the inventory adjustment.
If you want to view the return transaction in QuickBooks, click View Return.
If you want to un-post the return transaction from QuickBooks, click Undo Sync.
Processing Refunds in Webgility Desktop
Before refunds are visible in Webgility Desktop, they must first be initiated in Shopify. Here's how refunds are managed within the Shopify admin:
- Open the order and click “Refund.”
- Choose item(s) to refund or enter a manual refund amount.
- Decide if item(s) should be restocked — this implies a return.
- Click “Refund” to finalize.
Note: You can skip the return process and refund directly.
Steps to process refunds in your Accounting Solution
You can start the refund process once the order has been posted in QuickBooks. To do so, follow the steps below
- Once you process the refund on an order in Shopify, log in to your Webgility Desktop.
- Now when a refund becomes available on any order, the next time you click on Check for New Orders, the REFUND column will be marked with a white check in blue background, indicating a return has been received for that order.
How to post a refund.
To post a refund, make sure the respective order has already been posted to QuickBooks, else you will receive an alert message prompting you to post the order to complete this action.
If the order is already posted to Quickbooks, then go to the order details view by double-clicking on the order, goto Refund tab and click on Post Refund. If you have already posted the order, and now posting the refund for that order, you will be prompted to choose one of the three options as a preference for recording the refund in QuickBooks:
- Void Transaction: completely remove the original transaction from QuickBooks.
- Credit Memo: post an open credit memo to Accounts Receivable (A/R).
- Refunds Check: post a check that is marked as paid back to the customer out of the deposit-to account with which you had originally collected the revenue.
If you don't have a preference, we recommend the Create Refunds Check, as it is the most complete transaction for a refund and is the most appropriate in terms of accounting best practices.
Once you are done with the refund selection as per your preference, you can select whether to have the quantity adjusted for each item being returned.
Note: Refund transactions created by Webgility will by default return all items you are posting to inventory. If you do not want to return an item to inventory, click the Re-Adjust Quantity checkbox.
If you want to view the refund transaction in QuickBooks, click View Refund.
If you want to un-post the refund transaction from QuickBooks, click Undo Sync.