Overview
Luminous handles customer returns through Return/Refund Orders — dedicated records linked to the original sales order. Depending on the situation, you can record a physical return (inventory comes back), issue a refund (money goes back), or both at once.
Prerequisite: You can only create a return/refund order for a sales order that is in Shipped or Partially Shipped status.
Step 1 — Open the original sales order
- Go to Operations → Sales Orders in the main navigation.
- Search for and open the sales order the customer is returning.
- In the sales order detail view, locate the Refund/Return Orders tab (or click Actions → Create Return/Refund Order).
Step 2 — Start a new Return/Refund Order
Click Actions → Create Return/Refund Order. The Create Return/Refund Order form opens, pre-populated with the items from the original order.
Step 3 — Fill in the header fields
| Field | What to enter |
|---|---|
| Return Order Date | The date of the return (defaults to today). |
| Status | Received — item is already back in hand (default). Pending — return is authorized but the item has not yet arrived. |
Step 4 — Choose the transaction type
Select one of the three options that describes what you need to do:
- Return Only — Records a physical return and adds inventory back. No refund is issued.
- Refund Only — Issues a refund to the customer. No inventory changes occur.
- Return + Refund — Processes both the physical return and the customer refund.
The transaction type cannot be changed after the return order is saved.
Step 5 — Configure restocking (Return Only or Return + Refund)
If your transaction type involves a physical return, a Re-stock items (add back to inventory) checkbox will appear.
- Check it if the returned items will go back into sellable inventory.
- Leave it unchecked if items are damaged, defective, or will be discarded.
Once the return order status is set to Received, the restock setting can no longer be changed.
Selecting a restocking location
When re-stocking is enabled, a Location column appears on each line item. You must choose a warehouse location for every item with a quantity greater than zero.
- Optional — Warehouse Group filter: A Select Warehouse Group for Restocking dropdown lets you narrow the location list to a specific warehouse group (for example, a dedicated returns or QA warehouse). If your account has a default return warehouse group configured, it will be pre-selected automatically.
- Lot-tracked items: An additional Lot column appears. Select the appropriate lot for each item being restocked.
Step 6 — Enter return quantities
For each line item, enter the quantity being returned in the Quantity field. The Returnable Quantity column shows the maximum you can enter (original quantity minus any already returned or cancelled units). You cannot enter a quantity greater than the returnable amount.
Leave the quantity at 0 for any item that is not part of this return.
Step 7 — Review refund amounts (Refund Only or Return + Refund)
A refund summary appears at the bottom of the item table:
- Item Subtotal Refund — Calculated automatically from the quantities and unit prices entered.
- Custom Refund Amount — Enter any additional refund amount not tied to a specific line item (for example, shipping costs).
- Re-stocking Fee — Enter a fee to deduct from the refund if applicable. This will appear as a negative adjustment.
- Grand Total Refund — The final refund amount after all adjustments.
Step 8 — Submit the return order
Click Submit Return/Refund Order. Luminous will:
- Create the Return/Refund Order linked to the original sales order.
- If restocking is enabled and status is Received, add the returned quantity back to inventory immediately.
- Record the financial impact (refund) based on the transaction type selected.
You will be taken to the Return/Refund Orders list for that sales order.
Editing a return order after creation
Return orders are mostly locked once created. The main edit available is transitioning a Pending return to Received — at which point you will be prompted to confirm restocking locations and lots if applicable. Once status is Received, no further edits to quantities, prices, or the restock setting are possible.
Viewing return orders
All return orders for a sales order appear under the Refund/Return Orders tab on the sales order detail page.
To verify inventory after a return, navigate to Inventory → SKUs and search for the product.
Returns synced from Shopify
If you use the Shopify integration, Luminous automatically creates return orders when a return is initiated in Shopify — no manual steps are needed. The return type (refund only, restock only, or both) is determined by what was processed in Shopify.
Exchanges
Exchanges are not currently tracked as a linked pair in Luminous. A Shopify exchange typically creates a separate new sales order in Luminous. To track the full exchange, cross-reference both the return order in Luminous and the replacement order.