A sales return (also known as a customer credit, credit note, adjustment note, or credit memo) is money that you owe to a customer. If you're the customer, see Purchase returns, debits, and refunds
From the Sales returns and credits page, you can enter details of sales returns. Sales returns are goods returned by your customers, services not used or received by your customers, or credits given to your customers for invoice overpayments.
You first create a return and then process it. Processing means either applying the return to an unpaid (or future) invoice, or issuing a refund.
See these topics for more details:
Received a credit from a supplier? See Purchase returns, debits, and refunds.