How to Record Refunds and Returns for an Online Store in Malaysia

Bookkeeping

• A cancelled order that was never shipped should not stay in sales. Reverse it in the same period if possible.
• A return after payment is a reduction of revenue (a sales return). If the item is resalable, add it back to stock at cost. If it is damaged, write it off as an expense.
• Keep the refund proof: the platform's refund record, the courier return slip and photos where relevant.
• Do not net refunds against fees without recording both sides.

E-invoicing The Inland Revenue Board (LHDN) FAQ for the e-commerce industry says that when goods are returned and money is refunded by the platform, the platform issues a refund note e-invoice. A seller on Shopee, Lazada or TikTok Shop follows the platform's return process. A seller who sells through its own website and is within the e-invoicing scope issues the refund note itself.

Consumer law Under the Consumer Protection (Electronic Trade Transaction) Regulations 2024, a supplier who has received payment must bear the cost of re-delivery if the goods are materially different from the order or defective, or must provide services reasonably fit or as offered.

Platform return policies may be stricter than the minimum, so follow whichever rule gives the buyer more protection.