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Recording a Refund When Replacing an Item
Recording a Refund When Replacing an Item

Here's what to do if you've ordered an item that needs to be returned and refunded.

Cale Schmit avatar
Written by Cale Schmit
Updated over 6 months ago

There are many different situations when items need to be returned and refunded during the project lifecycle. Here's an example of recording a return and refund in Materio so that you can account for it within the invoicing and purchasing sections.

Example Situation

1. The client approved, and you ordered a quantity of two (2) of Vanity A
2. The client decided they only want quantity one (1) Vanity A
3. The client decided they also want to order one (1) Vanity B

How to record this in Materio for the invoicing/Billing side:

1. In the scope of work (SOW), reduce the Vanity A quantity from two (2) to one (1).
2. In the SOW, add a new scope item for Vanity B, with a quantity of one (1), and input the appropriate pricing information. Materio will recognize that a credit is now due for Vanity A.
3. In Project → Finances → Billing
4. Click [+New]CreditProject Scope click the checkbox next to the suggested credit to include it in the credit document. Then, save the credit.
5. Click [+New]Invoice and draft the invoice for Vanity B
6. Apply the credit from Vanity A to the invoice for Vanity B by selecting Apply Payment → From retainer or credit.

7. Send the invoice for payment if there is an outstanding balance.

How to record this in Materio for the ordering/purchasing side:

You'll leave the original PO recorded alone since that is the historical record. Following your standard workflow, you will need to order the new item like any other in Materio.

If you received a refund from the vendor, you should record it in Materio's expense section as a refund.

1. Go to the ProjectFinancesExpenses

2. Enter the information for the refund by uploading any documentation, naming it, choosing a payment method, date, vendor, amount, and any tax, and selecting the Refund checkbox. You'll want to align the refund to the scope item (vanity) so the financials in the performance tab are accurate.

You've now accounted for the return and refund in Materio!


Have questions? Chat with us from your project dashboard or email us at hello@materio.co.

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