This document explains how Redo invoices work, what each line item represents, and how accountants typically reconcile Redo invoices using the supporting files in the dashboard. It’s designed to help accountants quickly reconcile invoices and understand how charges flow through the business.
Where to Find Your Invoices
All return-related billing lives in Settings → Invoices within the Redo dashboard.
From this section, you can access:
Your current, accruing invoice
Past invoices (PDF format)
Downloadable CSV files with full line-item detail
What You’ll See in the Invoices Tab
Current Invoice
Shows charges accumulating for the current billing period, along with a high-level breakdown.
Past Invoices
Each completed invoice includes:
A PDF summary showing totals by charge type
A CSV download with detailed line items
What’s Included in the CSV Download
When you download CSV invoice data, you receive two files:
1. Invoice Legend
This explains each charge type and what it represents. Think of this as your reference guide for interpreting line items and determining how to account for them.
2. Line Item Invoice
This is the transaction-level file typically used for reconciliation and journal entries, including:
Date of charge
Reason for the charge
Order ID and order number
Customer name
Charge amount and cost
This file is typically used for reconciliation and journal entries.
Sometimes your browser will prompt you before allowing you to download two files at once. Make sure you allow this in your browser when prompted.
Explanation of Most Common Charge Types
Coverage - Return label (Pass-Through)
This is the coverage fee paid by shoppers at checkout so Redo pays for their future return label.
It is a pass-through charge, collected by the merchant from customers; then, it's remitted to Redo who uses it to pay for the merchant's return shipping labels.
These coverage fees should not be recognized as revenue to the brand when collected nor considered expenses paid to Redo when invoiced.
Redo does not provide tax advice. However, because this is a pass-through charge, many merchants exclude it from taxable revenue.
Coverage refund for cancelled order - Return (Canceled Orders)
If coverage is refunded to a customer, that amount is automatically deducted from your invoice.
Refunds applied before invoicing will not appear as charges.
Label covered by merchant
These charges appear when the merchant covers return shipping in specific scenarios, such as:
Damaged items
Incorrect items sent
VIP customer programs
These are automatically applied to prevent customers from being charged in situations where the issue is merchant-related. These settings can be adjusted in Settings → Flows → Returns.
Refund for cancelled return label
If a return label was covered but the return is later canceled, the charge is removed from the invoice automatically.
Instant Exchange Recovery
Applies only if instant exchanges are enabled.
When a customer receives a replacement item before returning the original, a temporary authorization is placed on their card.
If the original item is never returned, the customer is charged.
This recovery charge reimburses the merchant for the value of the outbound replacement item.
Return Shipping Paid by Shopper (Deducted from Refund or Credit)
In cases where a shopper pays for return shipping using their refund or store credit:
Redo pays for the shipping label upfront.
The cost is deducted from the shopper’s refund or credit.
Because the merchant recoups that value from the shopper, this appears as a charge on the Redo invoice to reimburse Redo for the label cost paid upfront.
Key Accounting Principles Used in This Guide
Pass-through charges and credits represent funds Redo collects or remits on the merchant’s behalf. Redo does not earn revenue on these amounts.
Redo fees represent charges for services provided by Redo and typically appear as operating expenses.
Income statement impact is based on economic substance, not cash movement. Some credits reduce previously recorded expenses or revenue and therefore still affect the income statement.
Refunds and reversals undo prior transactions. Whether they impact the income statement depends on whether the original transaction did.
How Accountants Typically Reconcile Redo Invoices
Basics
Use the PDF for high-level invoice review and approval
Use the CSV line item file to:
Group charges by return reason
Tie totals back to the invoice summary
Post detailed entries as needed
Totals in the CSV will reconcile directly to the PDF invoice.
Classifying charges as expenses (or not) for year-end reporting
Below is a chart of each line item that may show up on your invoice. Here’s a description of each column:
Invoice Line Item: Name of the charge. This matches your invoice.
Charge Type: This specifies whether Redo is charging for services, being reimbursed for third-party costs, or reimbursing the merchant. “Pass-through” indicates Redo does not earn revenue on the charge; “Refund (Reversal)” indicates an unwind of a prior transaction.
Hits Income Statement?: This is a Yes or No field so you can quickly determine what appears in the Income Statement.
Typical Income Statement Classification: This is a generic classification for how this would typically appear on the Income Statement so you can better understand the charge or credit described.
Descriptions for each Invoice Line Item are provided after the table.
Invoice Line Item | Charge Type | Hits Income Statement? | Typical Income Statement Classification |
Coverage - Return label | Pass-through Charge | No | Not an Expense |
Refund for cancelled return label | Pass-through Credit | Yes | Shipping Expense (Contra / Offset) |
Merchant covered label for damaged product(s) | Pass-through Charge | Yes | Return Shipping Expense |
Coverage refund for cancelled order - Return | Refund (Reversal) | No | Not an Expense |
Coverage refund for cancelled order - Package protection | Refund (Reversal) | No | Not an Expense |
Coverage refund for cancelled order - Final sale return | Refund (Reversal) | No | Not an Expense |
Coverage refund for cancelled order - Warranty | Refund (Reversal) | No | Not an Expense |
Coverage - Final sale return | Pass-through Charge | No | Not an Expense |
Coverage - Package protection | Pass-through Charge | No | Not an Expense |
Coverage - Extended warranty | Pass-through Charge | No | Not an Expense |
Coverage - Redo managed returns | Pass-through Charge | No | Not an Expense |
Package pickup | Pass-through Charge | No | Not an Expense |
Return shipping label paid by shopper; deducted from their refund/store credit | Pass-through Charge | No | Return Shipping Expense |
Flat rate shipping adjustment | Pass-through Charge / Credit | Yes / No | Return Shipping Expense / Contra-Expense |
Refund for cancelled package pickup | Refund (Reversal) | No | Not an Expense |
Merchant covered label for shopper receiving wrong product(s) | Pass-through Charge | Yes | Return Shipping Expense |
Label covered by merchant | Pass-through Charge | Yes | Return Shipping Expense |
Refund for instant exchange recovery | Pass-through Credit | Yes | Inventory Loss Recovery / Other Income |
Refunded instant exchange recovery adjustment | Pass-through Charge | Yes | Inventory Loss / COGS (Reversal of Recovery) |
Merchant carrier label credit | Pass-through Credit | No | Not an Expense |
Refund for approved carrier claim | Refund (Reversal) | No | Not an Expense |
Merchant credit for managed claim | Pass-through Credit | Yes | Inventory Loss Recovery / Other Income |
FedEx Easy Returns shipping charge | Pass-through Charge | Yes | Return Shipping Expense |
Credit for final sale item(s) returned | Refund (Reversal) | Yes | Refund Reimbursement / COGS Offset |
Repair fee pass-through credit | Pass-through Credit | Yes | Repair Revenue / Repair Cost Offset |
Return receiving & processing fee | Redo Fee | Yes | Software Expense |
Outbound shipping exchange credit | Pass-through Credit | Yes | Shipping Expense (Contra / Offset) |
Manual adjustment | Varies | Yes / No | Varies |
Per recycle request fee | Redo Fee | Yes | Software Expense |
POS per return fee | Redo Fee | Yes | Software Expense |
Exchange upsell revenue | Pass-through Credit | Yes | Revenue |
Refund for exchange upsell revenue | Pass-through Charge | Yes | Revenue Reversal / Contra Revenue |
Order Tracking | Redo Fee | Yes | Software Expense |
Per return software fee | Redo Fee | Yes | Software Expense |
Implementation fee | Redo Fee | Yes | Implementation Expense |
Card processing fee | Redo Fee | Yes | Credit Card Processing Fee |
Return and claim fraud prevention software fee | Redo Fee | Yes | Software Expense |
Descriptions of each Invoice Line Item
Coverage - Return label: Shoppers pay for returns coverage at checkout. The ecommerce platform passes those funds to the merchant. Redo then invoices the merchant for the same amount as a pass-through. This line item reflects these charges. When coverage is purchased, Redo pays for all return labels on the order, including labels for any subsequent exchanges tied to the original order.
Refund for cancelled return label: Refund for unused return labels originally charged to the merchant on cancelled or expired returns. This line item credits the merchant for those labels.
Merchant covered label for damaged product(s): When shoppers receive a wrong or damaged product, merchants may choose to cover the return shipping even if the shopper didn’t purchase Returns Coverage. This line item reflects the merchant-covered return label costs when the product was damaged.
Coverage refund for cancelled order - Return: Refunds for cancelled orders on which returns coverage was originally purchased. This refund reimburses the Returns coverage amount to the merchant.
Coverage refund for cancelled order - Package protection: Refunds for cancelled orders on which package protection coverage was originally purchased. This refund reimburses the package protection coverage amount to the merchant.
Coverage refund for cancelled order - Final sale return: Refunds for cancelled orders on which final sale return coverage was originally purchased. This refund reimburses the final sale return coverage amount to the merchant.
Coverage refund for cancelled order - Warranty: Refunds for cancelled orders on which warranty coverage was originally purchased. This refund reimburses the warranty coverage amount to the merchant.
Coverage - Final sale return: Shoppers pay for final sale return coverage at checkout. The ecommerce platform passes those funds to the merchant. Redo then invoices the merchant for the same amount as a pass-through. This line item reflects that pass-through. If final sale coverage was purchased, Redo covers the full purchase price of items that are returned on those orders.
Coverage - Package protection: For package protection purchases, the ecommerce platform pays those funds to the merchant. Redo then invoices the merchant for the same amount, functioning as a pass-through of shopper-paid protection which is what this line item represents. Redo will subsequently cover the costs of all missing or damages packages.
Coverage - Extended warranty: Shoppers pay for extended warranty coverage at checkout. The ecommerce platform passes those funds to the merchant. Redo then invoices the merchant for the same amount as a pass-through, which is what this line item reflects. Extended warranty coverage varies based on the merchant's warranty terms but is generally an extension of the manufacturer's warranty.
Coverage - Redo managed returns: Shoppers may purchase returns coverage at checkout. The ecommerce platform collects the coverage fee and passes it through to the merchant. Redo then invoices the merchant for the portion of the total coverage fee that applies to Redo’s return management and processing services; this line item reflects that charge. When a Shopper purchases coverage and initiates a return for the original order or any subsequent exchange order, Redo manages and processes the return on the merchant’s behalf. If coverage is not purchased by the shopper and is received at one of Redo's warehouses, there is a per return fee. This fee covers processing and refurbishing.
Package pickup: When eligible, shoppers may opt in to paid package pickup during the return process. This fee is combined with the return label cost and can be deducted from the shopper’s refund or store credit. The setting to deduct package pickup from the refund or store credit is the same setting as deducting the label cost. This charge represents the pass-through cost to reimburse Redo for package pickup services.
Return shipping label paid by shopper; deducted from their refund/store credit: When shoppers don’t purchase Returns Coverage, they will be responsible for the cost of the label. The merchant can choose to have the label cost deducted from the shopper’s refund or store credit. Redo pays for that label at the time of a return being submitted, the label cost is charged to the merchant at that same time. This line item represents the pass-through label cost to repay Redo for these return labels.
Flat rate shipping adjustment: Credit or charge applied to the merchant for the difference between the merchant's set flat-rate shipping charged to the shopper and the actual label cost. If this line item is a refund (negative amount), it means the actual label cost was less expensive than the flat rate label charged to the shopper. If this line item is a charge (positive amount), it means that the actual label cost was more expensive than the flat rate label charged to the shopper.
Refund for cancelled package pickup: If a shopper pays for package pickup and the brand deducts that fee from the shopper’s refund or store credit, but the pickup is later canceled, Redo issues a credit to the merchant for the original pickup cost and the pickup amount is added back to the shopper's store credit/refund totals.
Merchant covered label for shopper receiving wrong product(s): When shoppers receive a wrong or damaged product, merchants may choose to cover the return shipping even if the shopper didn’t purchase return coverage. This line item reflects the merchant-covered return label costs when the product sent was the incorrect product.
Label covered by merchant: Merchants may choose to cover the cost of some return labels for shoppers who did not purchase returns coverage. This line item represents a return label cost for which the merchant chose to incur the cost.
Refund for instant exchange recovery: For instant exchanges, Redo charges shoppers who don’t return items within the allotted time and passes the item cost to the merchant. Redo collected these funds from shoppers and is remitting them to the merchant as a statement credit. This line item credits the merchant for exchanges that were never returned.
Refunded instant exchange recovery adjustment: For instant exchanges, Redo charges shoppers who don’t return items within the allotted time and passes the item cost to the merchant. Redo collects these charges via Stripe and issues a matching credit on the merchant’s invoice, listed as "Instant Exchange Recovery" on the invoice. If the merchant later refunds the shopper, Redo processes that refund via Stripe and passes the expense through to the merchant—this line item reflects those refund pass-throughs.
Merchant carrier label credit: When Redo purchases a label from a merchant's carrier account for a covered order, the carrier will charge the merchant for that label. Because the order was covered by Redo, Redo will credit the merchant for that label. This line item represents this credit back to the merchant.
Refund for approved carrier claim: Refund issued when a carrier approves a claim for a lost return package. The amount reflects the approved claim value (typically up to the carrier’s standard $100 limit) and is credited back to the merchant.
Merchant credit for managed claim: This credit is issued for approved claims submitted by shoppers who purchased Package Protection. The amount of the credit is equal to the value of the item(s) included in the claim, less the cost of the shipping label. The credit will be applied once an exchange order is created or a refund or store credit is processed.
FedEx Easy Returns shipping charge: When a shopper uses FedEx Easy Returns (boxless drop-off), a per-return fee applies. If the order didn’t have returns coverage and the merchant chooses to pay this fee, this line item records that merchant-paid charge. If the merchant deducts return shipping costs from the shopper’s refund or store credit, this line item records the FedEx Easy Returns costs as a pass-through since Redo fronts the fee at the time of return submission.
Credit for final sale item(s) returned: Final Sale Returns coverage allows shoppers to return final sale items if they purchased final sale return coverage. The refund is processed through the merchant's ecommerce platform, and Redo then reimburses the merchant per the coverage agreement. This line item represents that reimbursement to the merchant for those returns.
Repair fee pass-through credit: When a customer requests a repair, a repair fee may apply to cover restoration costs such as materials and labor. Redo collects this fee via Stripe at the time the repair request is submitted and then issues a corresponding credit to the merchant.
Return receiving & processing fee: Software fee that is charged per-return to merchants for the physical handling and processing of returned items at Redo's fulfillment/returns centers. This fee will appear on the invoice once the return is processed by one of Redo's return centers.
Outbound shipping exchange credit: Merchants can opt to have the customer pay for outbound shipping of the exchange order (the new item being sent to the customer). Redo collects these charges via Stripe and issues a matching credit on the merchant’s invoice, listed as "Outbound shipping exchange credit" on the invoice.
Manual adjustment: This line item represents a manual adjustment to the invoice made by Redo. If you have any questions about this line item, please reach out to Redo support.
Per recycle request fee: Software fee that is charged per recycle request processed.
POS per return fee: Point of sale software fee that is charged per return submitted through Redo's POS integration.
Exchange upsell revenue: When a shopper exchanges a returned item for a higher-value item, an outstanding balance is owed. Redo charges the shopper for this upsell amount at the time the return is submitted and passes through the upsell amount to the merchant as a credit.
Refund for exchange upsell revenue: For exchanges with an upsell, the shopper will pay for the upsell amount at the time of return submission. Redo collects these charges via Stripe and issues a matching credit on the merchant’s invoice, listed as "Exchange upsell revenue" on the invoice. If the shopper later returns that exchange for a refund, Redo processes that refund via Stripe and collects the same amount from the merchant as pass-through refund to the shopper.
Order Tracking: Cost of Redo's order tracking product.
Per return software fee: Software fee that is charged per return submitted.
Implementation fee: Redo's fee for white glove implementation services.
Card processing fee: Credit card processing fee. This fee may be avoided by choosing to pay via ACH.
Return and claim fraud prevention software fee: Software cost for yofi fraud prevention analysis.