Overview
Luminous handles customer returns and refunds through dedicated Return/Refund Orders page, which are linked to the original sales order. You can process returns manually for any shipped order, and Luminous will also create return orders automatically when a return is initiated in Shopify.
Prerequisites
- The original sales order must have a Shipped status before you can create a return or refund order against it.
- If the order came through Shopify, a return order may already exist — check the Refund/Return Orders tab on the sales order first.
Step 1 — Open the Original Sales Order
- Go to Operations → Sales Order Grid.
- Click the Shipped tab to filter for shipped orders.
- Search for and open the relevant sales order.
Step 2 — Start a New Return/Refund Order
From inside the sales order, either:
- Click the Refund/Return Orders tab, then click Create Return/Refund Order, or
- Click Actions → Create Return/Refund Order.
This opens the Create Return/Refund Order form, pre-populated with the items from the original order.
Step 3 — Fill In the Return Details
Return Order Date
Set the date the return is being processed.
Status
Choose one of two statuses:
- Received — The physical items are already back in your possession. Inventory is restocked immediately (if restocking is selected).
- Pending — The items are still in transit or awaiting receipt. No inventory change is made until the status is updated to Received.
Transaction Type
Select what this return/refund represents:
| Option | What it does |
|---|---|
| Return Only | Records a physical return and restocks inventory. No financial refund is issued in Luminous. |
| Refund Only | Issues a refund to the customer. No inventory change. |
| Return + Refund | Processes both the physical return (with optional restock) and the financial refund. |
Step 4 — Configure Restocking (Return Only and Return + Refund)
If your transaction type involves a physical return, a Re-stock items checkbox will appear.
- Check it if the returned items are in sellable condition and should be added back to inventory.
- Leave it unchecked if the items are damaged, defective, or will be discarded.
Choosing a Warehouse Location
When restocking is enabled, you can optionally select a Warehouse Group to filter where items are returned to. This is useful if you route returns through a QA or inspection warehouse before moving them to your main sellable stock.
For each line item in the table, select the Location (and Lot, if the product is lot-tracked) where the stock should be placed.
Step 5 — Set Quantities and Review Line Items
For each item in the return:
- Enter the Quantity being returned. The form shows the original ordered, shipped, and previously returned quantities for reference.
- Review the Returnable Quantity (available to return) to avoid over-returning.
Step 6 — Adjust Refund Amounts (Refund Only and Return + Refund)
For transaction types that include a refund, a summary section appears at the bottom of the table:
- Item Subtotal Refund — Automatically calculated from the line items.
- Custom Refund Amount — Enter any additional amount to refund (e.g., shipping).
- Re-stocking Fee — Deduct a fee if applicable.
- Grand Total Refund — The final calculated refund amount.
Step 7 — Submit
Click Submit Return/Refund Order to create the return. Once submitted:
- The return order is locked — the transaction type and quantities cannot be edited.
- The Re-stock setting can only be changed while the status is still Pending. Once the status is Received, restocking is locked.
- If you need to make significant changes, you may need to create a new return order.
Viewing Return Orders
All return orders for a sales order appear on the Refund/Return Orders tab of that sales order. Each entry shows the type, status, and whether inventory was affected.
Returns Synced from Shopify
If a customer initiates a return in Shopify, Luminous automatically creates a linked return order:
- Pending status = the return is requested or in transit; no inventory change yet.
- Received status = Shopify has confirmed receipt; inventory is restocked automatically.
You do not need to manually advance a Shopify-synced return from Pending to Received — Luminous handles this during its regular sync. For more detail, see What does a "Pending" status mean for a return order synced from Shopify?.
Exchanges
Exchanges are not directly linked to a return order in Luminous. When Shopify processes an exchange, the replacement typically appears as a separate sales order in Luminous. You can reference both the return order and the new sales order to track the full exchange.
Checking Inventory After a Return
To confirm that inventory was restocked correctly after a return:
- Go to Inventory → SKUs.
- Search for the product to view updated stock levels.