Here we explain how you can create and send invoice corrections to your customers for returns or refunds.

You can find more information on configuring your invoice correction document here.

E-invoices in ZUGFeRD or XRechnung format are currently not available in the cloud version of Pickware. Invoice corrections in e-invoice format therefore cannot be created. The invoice corrections described in this article refer exclusively to regular invoices (PDF).

A cancellation invoice is needed, for example, to correct the address or contact person on the original invoice. This cancels the original invoice and creates a new one. If you want to cancel an order that has not yet been shipped, you can also use a cancellation invoice.

An invoice correction, on the other hand, must be created when changes occur to the invoice line items, for example as part of a return.

The invoice correction takes into account changes to order line items (e.g. due to returns), discounts (before/after shipping), shipping costs, and tips. The difference between the amount calculated by Shopify and the amount entered in the Refund amount field is also recorded. Restocking and return fees are also included. The difference amount is taxed at 0%.

For some payment methods, refunds are executed with a delay and are initially in Pending status. If the refund amount differs from the amount proposed by Shopify, this can temporarily result in different totals in Shopify and Pickware. These automatically align once the refund is completed.

To create an invoice correction, open the returns overview in the Pickware Admin under Orders → Returns and click on the return number for the desired order. Then click on Create invoice correction. This requires a previously created invoice that the correction refers to.

An invoice correction can be created based on the return line items. If there are amount changes due to the refund, a further invoice correction must be made.

You can also automate the creation of invoice corrections. How this works is explained here.

If, as a gesture of goodwill, you want to refund your customers part of the invoice amount or the shipping costs, for example because the product arrived damaged, you can process the refund in Shopify and then create an invoice correction in Pickware. To do this, click on Refund at the top within the order.

Enter the corresponding quantity. The corresponding price will then be automatically entered on the right. Finally, click the button at the bottom right to process the refund.

Always select the correct line items in the correct quantity on the left and refund the full amount. If the selection is incorrect or the refund amount differs, the refund will be taxed at 0%, which leads to excessive tax payments. For partial refunds, please follow the steps in this article.

You can then create the invoice correction in Pickware as described above.

Independent of returns and refunds, you can also create invoice corrections when changes have been made to the order, for example a change in prices or order line items. Please note that changes to the order are only possible in Shopify.

Depending on how your process is set up, you can either (1) process the refund first and then create the invoice correction, or (2) create the invoice correction first and then process the refund.

First, process the refund as usual in your Shopify Admin. You can then create the invoice correction in the Pickware Admin as described above. When doing so, don't click on Create document, but on the arrow next to it. With the option Create and send document, the document is sent directly to the customer from the Pickware Admin. Alternatively, you can send the document via Create and download PDF using an email program of your choice.

In this case, the Refund email template in the Shopify Admin needs to be adjusted so that your customers can download the invoice correction via a button in the email.

The process involves first creating a return in Shopify, for which an invoice correction is then created in the Pickware Admin. When the return is completed in Shopify, your customers receive the adjusted email with the button to download the invoice correction.

To adjust the template, proceed as follows:

As a result, a corresponding download button will now be displayed for all returns that have an invoice correction. If no invoice correction exists, the email will be displayed as usual. To preview the button, you must therefore create a test order that includes an invoice correction.