HOW TO PROCESS ORDERS AND CREDIT MEMOS IN MAGENTO 2

Orders and sales are the backbones of any eCommerce business. Of course, all parts involved play a pivotal role, but to put it simply, when merchants get an order and they successfully deliver it, they earn money.

A lot of businesses have everything automated. If you have a warehouse that takes care of your business, you can set up Magento to automatically transmit new order information to the warehouse, and they would deal with the shipping, put a tracking number, and update Magento via the API or other extensions. In the case of small companies or companies that have not integrated automation, orders will have to be processed manually from the back end.

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Order Management Workflow
No matter if you are a big automated company, or a small one, you will have a set of status changes in the Order Management Workflow. Every time a customer places an order, the system adds a new transaction activity, set by default as “pending”. A “pending” order can be canceled at any time until the payment is processed. Once the payment is done, the order status will be changed to “processing”. When an order is placed, the user usually gets a message, so it is imperative to set up your email properly, as all of your order based actions are email dependent.

Order status
To see the order in the back end, you simply need to go to Sales > Orders. Here, the merchant can verify the order and start preparing the order for shipping. A simple click on the order will take you to the order information section. This shows details like the IP where the order was placed from, the customer’s email, the billing and shipping address, how the customer paid, the items and the quantity, any promotions applied to the order, etc.

Shipping
The next step for the merchant is to go to the warehouse and start preparing the products for shipping. Once they are ready, the merchant will have to click on the Ship button. Here, a tracking number can be added. You can also email a copy of the shipment information or add a few comments for the buyer. Once that is done, the shipment can be submitted. The status of the order will now be “completed”.

Invoices
Magento automatically creates an invoice for the order once the order is paid for using a credit or debit card, or other payment options. If your business requires a different setup, for example, payment when goods are received, Magento can be set up to issue invoices based on these requirements.

Credit Memos
But what happens when an order is returned, is shipped to the wrong address, or if the customer requested a refund or a replacement? In Magento, these are called Credit Memos, so in this instance, you will have to create a new credit memo. In case the customer wants to return the item and get a full refund, you can click on the return to stock option. The shipping fee can also be refunded. If the customer received the goods but requires a refund for getting it late, or for any other reasons, and you would like to refund a certain amount, you will simply have to unclick the “Return to stock” option and set the “Quantity to refund” value to 0. If a payment gateway is integrated with Magento, the refunds will be done automatically.

At OAK3, we have great expertise in developing eCommerce platforms for B2C and B2B online stores. OAK3 is a Solution Partner for Magento, so if you want to know more about our services, simply contact us or drop us an email at hello@oak3.agency. We’re here to help!

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