Credit Note – SLP Checks Grocery

WorkSmart. Reliance Retail Confidential Information::For Training purposes only.

[Audio] Background Credit Note (C-N---) is one of the most common methods used for product returns in retail. It allows the customer to return or exchange an item previously purchased and receive a store credit of equal value. This CN amount can be used for future purchases. However, Credit Notes have also become a frequent mode of misdemeanour activity across grocery business formats. Fraudulent CNs without physical return, duplicate bills, inflated values, or unauthorized processing can result in financial losses and inventory shrinkage. Hence, it is crucial to ensure a controlled, documented, and validated CN process at store level, supported by system checks and accountability. Auditing credit notes is essential to prevent fraud, ensure process integrity, and maintain accurate financial and inventory records. Types of Credit Note Credit Note issued to Walk in Customer Credit Note issued for Online orders.

[Audio] Design Principles A Credit Note is issued when a customer returns a product along with the original bill, as per the Company’s Return Policy. The customer then proceeds to the C-S-D or Cash Till (in small formats), where the Credit Note equal to the value on the original bill is created by the C-S-A--. The item is taken back into inventory and the CN details are entered in the CN Register. The CN is provided to the customer as a mode of payment for future purchases. As per new practice, plastic card based CNs have been discontinued and replaced with Mobile CN Top Up system. All CNs issued can be tracked through the RPOS/RRA backend system. Credit Notes are also used in cases of price mismatch, product damage, or customer dissatisfaction. Since the P-O-S allows CN issuance without supervisor approval, strict checks are necessary to prevent misuse. Audit of CNs helps ensure financial accuracy, inventory integrity and fraud prevention..

[Audio] All Credit Note / Sales Return transactions of walk in customers must be supported by a serially numbered refund docket. The returned item is first checked by the LPA/LPE at the Entry Gate, who makes a Return Docket or records it in the Inward Register. Refund docket should mention the exact date & time of article returned. Refund docket must carry signatures of LPE/LPA, M-O-D and the customer. A Credit Note Register must be maintained at the store for daily reconciliation by SM/MOD/C&A. Refund report from R Office portal must be cross verified with refund docket, CN invoice and original invoice photocopy. LPA/LPE at the entrance must mark off returned articles on the original invoice and round off returned quantity. 100% of return articles must be physically verified by the LPE/LPA. Any exception during reconciliation by SM/MOD/C&A must be escalated to S-L-P and Market Manager..

[Audio] Activity Chart Sr. No. Activity By Whom When 1 Check credit note issuance process followed correctly S-L-P Resource During Audit / Store visit 1.1 All CN/Sales Return transactions must be supported by a serially numbered refund docket book (1 plus 1 copy) L-P-E At the time of return 1.2 Refund docket must mention exact date & time of customer’s return visit L-P-E At the time of return 1.3 Refund docket must carry signatures of L-P-E--, M-O-D--, and customer L-P-E At the time of return 1.4 Credit Note Register to be maintained for daily reconciliation by SM/MOD/C&A (In Large format stores only) Sm / Mod / C&a Daily / End of Day 2 Validate transactions with C-C-T-V to check presence of article during return, article availability at P-O-S during CN created at POS SLP Resource During Audit 3 Check daily reconciliation of credit notes done by SM/MOD/C&A SLP Resource During Audit 4 Take out refund report from R office portal from last visit date to visit date S-L-P Resource During Audit 5 Verify refund docket details (Qty/Amount) with CN bill during validation S-L-P Resource During Audit 6 Take out Sales return details from S-A-P (T Code M-B-5-1-, Mvt 252) from last visit date to visit date and validate physical count of Top 5 return articles S-L-P Resource During Audit 7 Check top 10 masked mobile numbers from last audit to present audit ( report from Tableau). S-L-P Resource During Audit 8 Check random 10 cash refund transactions ( Only valid for store in D-mart Vicinity). S-L-P Resource During Audit 9 Any exceptions (Process non compliance and misdemeanors) observed then raise D-S-I-R as per matrix and investigate if required S-L-P Resource In case of exception observed during audit.

[Audio] Activity Chart – CN Validation S No Activity By Who By When 1 Take out CN Report from RPOS/RRA (from last checked date to till date) M-L-P Always 2 Match the CN entries as per system with Return Docket Book and Inward Register with SLP MLP Always 3 Check CN file for Original Bill and Return Docket with S-L-P sign and SM/DM countersign M-L-P Always 4 In case of imperfect documents in Serial 3 above OR missing entry in Register OR imperfect Return Docket, question the C-S-D In charge, S-L-P and Duty Manager present on the date and time of CN creation M-L-P On event 5 Cross check the suspect CN transaction with C-C-T-V support to observe presence of customer and S-L-P action M-L-P On event 6 In case C-C-T-V coverage not available, conduct a Physical Counting of the product for which CN was made. If shortage is found, our suspicion will further strengthen and deeper investigation done M-L-P On event 7 Check the time gap between CN creation and fresh billing, if any, to get further clues (higher time gap will increase suspicion). Also question the cashier from who’s ID fresh billing was done. M-L-P On event 8 Check the Attendance and Staff Movement Register to ascertain presence of all staff related to Return Docket, CN creation and Fresh Billing M-L-P On event.

[Audio] In case of exception found then way forward instructions DSIR to be raised for each exception observed – process non compliance or misdemeanour Detailed Investigation to be carried out for misdemeanour cases. In case of variance observed during physical count of Top 5 sales return articles, same needs to be investigated thoroughly with the help of C-C-T-V-. The following will account for as exceptions: CN Process not followed by Ops team Daily reconciliation of refunds not done by SM/MOD/C&A Refund documentation not filed properly by SM/MOD/C&A SM signed off the E-O-D karta certificate without validation of refunds CNs note issued without receipt of physical article. CNs issued for a higher value than the product's original sale price. Used merchandise returned fraudulently and CN issued..

Annexure:- Customer Exchange Docket. Customer Exchange/Return Docket Senai No, vustomer Name : Phone No.: EN Code No. Date: Product Description Qty. Time of Return Old No. Old Date New Bill New Bill Reason for Return Amount Date No..

[Audio] Annexure: Register formats CN Register. Annexure:- Register formats.

BEST PRACTICES. In Order to validate/ Cross check the credit note among the above Best practices followed at stores include Self Certification by C&A and Checking by SM..

Best Practices. CN Validation Audit by LPA/LPE with Refund report vs sales returns vs CED..

[Audio] faqs Q1. When can a Credit Note be issued to a customer? Ans. A Credit Note is issued when a customer returns a product along with the original bill, as per the Company’s Return Policy. It is also applicable in cases of price mismatch, product damage, or dissatisfaction. Q2. What documentation is required for Credit Note issuance? Ans. Each CN must be supported by: Original invoice, Serially numbered refund docket (with date, time, and signatures of LPE/LPA, M-O-D--, and customer), CN invoice copy, Entry in the CN Register Q3. Who verifies the returned product and initiates the process? Ans. The LPA/LPE at the Entry Gate physically verifies 100% of return articles, marks the original invoice, and records the return in the Inward Register or Return Docket. Q4. How are Credit Notes tracked and reconciled? Ans. CNs are tracked through the RPOS/RRA system. Store Managers (S-M---), mods, and (C&A) are responsible for daily validation of CN entries, refund dockets, and reconciliation with R Office refund reports. Q5. What are the controls in place to prevent CN fraud or misuse? Ans. Random C-C-T-V validation, Daily checks by SM/MOD, Trend analysis of CN patterns, Immediate escalation of exceptions to S-L-P and Market Manager.

THANK YOU. ell'.ince. Thank You.