Store credits are used instead of refunds during returns which can later be used to purchase something else.
These credits are given to customers and can be redeemed as a payment method.
Accrual of Store Credits
Store credits are accrued in POS when an one or all items are returned and you do not wish to offer a refund. You can then issue store credits and print a return note for the customer’s reference. You can also manually add store credits by going to Customers-> Select Customer -> Store Credit Transactions and add store credits.
Redemption of Store Credits
While creating a new order, if a customer has store credits, then you can use those credits as a payment method. If the credits are in excess, the remainder will still be available for future purchases. If the credits are fewer, you can always add another partial payment method to pay for the order.