Purchase Return in ERPNext
A Purchase Return refers to goods purchased from a supplier that are returned due to defects, quality issues, excess stock, or other operational reasons.
It helps maintain accurate stock levels and ensures correct financial adjustments in accounts.
Purchase Returns ensure accurate inventory valuation and reverse both stock and accounting impact of purchased goods.
Access Path
Purchase Return is created from:
Purchase Receipt or Purchase Invoice
1. Prerequisites
Before creating a Purchase Return, ensure:
- Item master is created
- Purchase Invoice or Purchase Receipt exists
2. How to Create a Purchase Return
- Open the original Purchase Receipt against which goods were received.
- Click Create > Return.
- A new Purchase Receipt will open with Is Return enabled.
- Items, rates, and taxes will be auto-filled with negative values.
- Save and submit the document.
3. Stock Impact
When a Purchase Return is submitted:
- Stock quantity is reduced from the warehouse
- Stock valuation is adjusted based on original purchase rate
- Stock Ledger reflects a reverse entry
4. Accounting Impact
Purchase Return affects accounting as follows:
- Stock In Hand account is credited
- Stock Received But Not Billed account is debited
- If perpetual inventory is enabled, warehouse accounts are also updated
5. Impact on Original Document
When a Purchase Return is created:
- Returned quantity is updated in the original Purchase Receipt
- Linked Purchase Orders are also updated
- If fully returned, status becomes Return Issued
6. When to Use Purchase Return
- Defective or damaged goods received
- Incorrect items delivered by supplier
- Excess quantity received
- Quality mismatch or rejection after inspection
7. Related Topics
- Sales Return
- Purchase Receipt
- Perpetual Inventory
- Debit Note
