> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/setup-accounts/setup-customer-database/set-customer-points-configuration/allow-points-to-become-negative.md).
# Allow Points to become Negative
**YouTube:** [How to Allow Negative Loyalty Point Balances for Retail Customers?](https://www.youtube.com/watch?v=Lm3Jyr2Eq7c)
## How to Allow Negative Loyalty Point Balances for Retail Customers?
In this tutorial, we will learn how to allow a customer's loyalty point balance to become negative during **Sales Return** transactions using the **"Allow Points to become -ve"** option in Logic ERP. This feature allows sales returns to be processed even when the return causes the customer's loyalty points to fall below zero.
***
### Objective of This Feature
* Allow Sales Returns when loyalty points become negative
* Prevent Sales Return restrictions based on loyalty point balance
* Track negative loyalty point balances accurately
* Automatically adjust future earned points against the negative balance
* Maintain an accurate Customer Point Ledger
***
### Access to the Customer Points Configuration
* Navigate to the **Set Customer Points Configuration** module.
* Locate the option labeled as:
> **"Allow Points to become -ve"**
When enabled, the system allows the customer's loyalty point balance to become negative during Sales Return transactions.
***
### Understand the Default Behavior
**Loyalty Point Configuration**
For this example:
* **₹100 Purchase = 1 Loyalty Point**
* **1 Loyalty Point = ₹10**
First, let's observe the behavior when **"Allow Points to become -ve"** is disabled.
### Generate Sales Bills
* Create a new **Sale Bill** and add a new **Loyalty Customer**.
* Save the Sale Bill.
* Search for the same customer again.
* You will see that **40 loyalty points have been earned** and added to the customer’s account.
* Create another Sales Bill for the same customer.
**Observation**
Based on the previous purchase, the customer has earned **40 loyalty points**.
* Redeem all **40 loyalty points** in the second Sales Bill.
* Save the transaction.
The customer's available loyalty point balance is now **zero**.
### Generate a Sales Return
* Create a **Sales Return** for the product purchased by the same customer.
* Click on **Enter Return**.
* Select the item to be returned.
* Save the Sales Return.
**Result When the Feature is Disabled**
The software restricts the transaction and displays an error message indicating that the customer's loyalty points would become negative.
Therefore:
* The Sales Return cannot be saved.
* The negative loyalty point balance is not generated.
***
### Review the Customer Point Ledger
Open the **Customer Point Ledger Report**.
The report shows:
* **40 points earned** from the first bill.
* **40 points redeemed** in the second bill.
* **Current balance: 0 points**
* The unsuccessful Sales Return is not reflected in the ledger.
***
### Enable Negative Loyalty Points
* Return to the **Set Customer Points Configuration** module.
* Enable **"Allow Points to become -ve"**.
* Save the configuration.
### Reattempt the Sales Return
* Return to the **Sales Bill** module.
* Recreate the Sales Return for the same customer.
* Select the required item.
* Save the transaction.
**Result**
The system now allows the Sales Return to be saved even though the customer's loyalty point balance becomes negative.
#### Verify the Loyalty Point Ledger
* Open the **Customer Point Ledger Report** again.
* The Sales Return transaction is now reflected in the report, and the customer's loyalty point balance becomes **-40**.
***
### How Future Points Are Adjusted
When the customer earns loyalty points from future purchases:
* The newly earned points are first adjusted against the negative balance.
* The customer does not start accumulating a positive balance until the negative balance has been completely cleared.
* Once the negative balance reaches zero, the customer starts earning loyalty points normally again.
***
### Key Benefits
* **Flexible Returns:** Allows Sales Returns even when loyalty points become negative.
* **Accurate Tracking:** Negative balances are properly recorded in the Customer Point Ledger.
* **Automatic Adjustment:** Future loyalty points are automatically adjusted against the negative balance.
* **Smooth Transactions:** Prevents unnecessary Sales Return restrictions.
* **Better Loyalty Management:** Maintains a clear and accurate loyalty point balance.
***
### Final Outcome
By enabling **"Allow Points to become -ve"**, Logic ERP allows Sales Return transactions to be processed even when they result in a negative loyalty point balance. The negative balance is recorded in the Customer Point Ledger and is automatically adjusted against loyalty points earned from future purchases.
---
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