Purchase Return
A Purchase Return refers to the process of returning a purchased item back to the supplier.
This typically happens when goods are defective, do not match quality expectations, or are no longer required by the buyer.
1. Prerequisites
Before creating a Purchase Return, ensure the following are available:
2. How to Create a Purchase Return
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- Open the original Purchase Receipt against which items were receive
- Click on Create > Return.
A new Purchase Receipt will be created with Is Return checked. Item quantities, rates, and taxes will appear as negative values.
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- Submit the Purchase Return document.
On submission, the system reduces stock from the selected warehouse and adjusts stock valuation based on the original purchase rate.
If Perpetual Inventory is enabled, additional accounting entries are posted to ensure warehouse accounts match stock ledger values.
3. Impact of Purchase Return
3.1 Stock Impact
- Returned quantity is deducted from inventory.
- Stock valuation is adjusted using original purchase rate.
3.2 Accounting Impact
- Stock In Hand account is credited.
- Stock Received But Not Billed account is debited.
4. Impact on Purchase Receipt
When a Purchase Return is created:
- The Returned Quantity field is updated in the original Purchase Receipt.
- Linked Purchase Orders are also updated.
- If fully returned, the status changes to Return Issued.
