The items are shipped but the order was cancelled before receiving the payment. How do I handle the return for this in Zoho Inventory?

Step 1: Create an invoice for the sales order

• Open the sales order.
• Click on Create > Invoice.
• Save the invoice and keep it unpaid.

Step 2: Create a sales return

• Navigate to the sales order.
• Open the sales order.
• Click on Create > Sales Return.
• Configure the items and the quantity returned.
• Click Save.

Step 3: Receive items from the sales return

• Open the sales return.
• Click on Receive and choose whether you want to receive the items partially or completely.
• Click Save to record a receive of the items in your warehouse. This will increase the physical stock of the item.

Step 4: Associate a credit note to the sales return

• Open the sales return.
• Click on the Create Credit Note button.
• Save the credit note.

Step 5: Apply credits to invoice

• Open the above credit note.
• Click on the Apply to Invoice button.
• Against the above created invoice number, enter the invoice amount itself in the Amount to Credit field.
• Click Save to apply the credits. This will offset the invoice amount and completes the return process for your order.