When a damaged product is returned and you need to refund the customer in Odoo 18, the cleanest method is to open the original posted invoice and create a credit note from there. That keeps the refund linked to the invoice and helps Odoo reconcile the payment properly.
How to post it
- Open the customer invoice for the returned product.
- Click Credit Note.
- Enter a reason such as Damaged product return.
- Check the journal and reversal date.
- Choose Reverse to create a draft credit note.
- Adjust the product and quantity so the note matches what is being refunded.
- Click Confirm to post the credit note.
When to use each option
Use Reverse when you want a draft credit note that you can edit before posting. This is the best choice for a damaged item return when only part of the invoice should be refunded.
Use Reverse and Create invoice only when you also need a replacement invoice for the customer. Odoo notes that this option creates a validated credit note and a new draft invoice tied to the original one.
Practical example
If the invoice included five units but one unit arrived damaged and is being returned, create the credit note from the invoice, then change the quantity on the credit note to refund only that one unit. After confirming it, Odoo posts the refund and updates the accounting records.
If the invoice is already paid
If the invoice was paid before the return, the credit note can still be posted from the invoice itself. Odoo’s workflow is designed so the refund stays matched to the original sale, which makes reconciliation easier.
Vendor-side note
If your question is about a supplier return instead of a customer refund, the same idea applies in reverse: open the vendor bill and create a vendor credit note or refund from it. Odoo documents and training material describe this as the normal way to handle returned goods from suppliers.