Plain-language questions
Ask for return processing time per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Logistics
Return processing time: formula and example.
Return processing time is the time between a return arriving at the warehouse and it being completed: inspected, restocked or written off, and credited. Customers are waiting for their money or replacement during that time. Meanwhile the returned stock sits idle until it is processed.
Return processing time formula
Sum of (time completed − time received) across completed returns ÷ number of completed returns
Worked example
In May 2026 Acme Groothandel completed 400 returns. Together they took 14,400 hours from receipt to completion. The average return processing time is 14,400 ÷ 400 = 36 hours, or 1.5 days.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A shorter processing time means customers get their money or replacement sooner and reusable stock is back on sale sooner. Returns often get the lowest priority in busy periods, which is exactly when most of them arrive. Compare by month and return reason, and against the timeframe you promise customers or that applies by law.
Pitfalls with return processing time
- Starting the clock at registration rather than physical receipt, so waiting time disappears.
- Measuring credit and restocking as one step when they sit with different teams.
- Leaving returns that are still open out of the average, when they have been waiting longest.
SQL & DAX
Calculating return processing time in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('month', received_at) AS month,
COUNT(*) AS returns_processed,
ROUND(AVG(EXTRACT(epoch FROM processed_at - received_at) / 86400)::numeric, 2) AS avg_processing_days,
COUNT(*) FILTER (WHERE processed_at - received_at > interval '3 days') AS over_3_days,
SUM(amount) AS return_value
FROM returns
WHERE processed_at IS NOT NULL
GROUP BY 1
ORDER BY 1;Processed Returns = CALCULATE(COUNTROWS(Returns), NOT ISBLANK(Returns[ProcessedAt]))
Return Processing Time (days) = DIVIDE(SUMX(FILTER(Returns, NOT ISBLANK(Returns[ProcessedAt])), DATEDIFF(Returns[ReceivedAt], Returns[ProcessedAt], HOUR)) / 24, [Processed Returns])In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate return processing time?
For each return, subtract the time it was received from the time it was fully completed. Take the average across all returns completed in the period. Also track how many returns exceed your own target.
How quickly do you have to refund a return?
For distance sales to consumers in the EU, the refund is due within 14 days of the customer withdrawing, although you may wait until you have the goods back or proof they were sent. For business customers, your terms and conditions apply. Check the rules that apply to your situation.
What is the difference between return processing time and return rate?
Return rate measures how many orders or items come back. Return processing time measures how quickly you deal with them. The first says something about your products and expectations, the second about your warehouse and admin process.
Further reading
- KPI libraryLogistics KPIs: formulas and examplesLogistics KPIs measure whether orders reach the customer on time, complete and at a reasonable cost. The data comes from your WMS, shipping platform and carrier statuses.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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