What it does
A purchase return records goods going back to a supplier: damaged, wrong or surplus. The supplier's account goes down by the returned amount, the returned goods leave your warehouse, and the purchase is reversed in the books (What a purchase changes in the books and in stock). If goods did not move and only the price changed, use a debit note instead (Issue a debit note).
Open Purchase Return (menu Purchase Entries). The list shows the Voucher no, Date, Supplier and Amount; a tile shows the Total returned invoices.
Two ways to return
| You want to | Do this |
|---|---|
| Return everything on an invoice | Return on the invoice's page. You type 1 to confirm. All its lines go back, dated today |
| Return part, or return against several lines | Purchase Return > Add, and find the invoice in Ref. invoice no |
Make a return
- Choose Add
- Find the invoice
- Set what goes back
- Save
| Area | Change |
|---|---|
| Supplier's account | You owe the supplier less, by the returned amount, from the return date |
| Purchases | The purchase return ledger (or the product's own) is credited and the adjustments are reversed |
| Stock | The returned goods leave the warehouse. There is no check that the stock is still there |
| The invoice | Its Due amount falls by the returned amount, and its Edit and Delete switch off |
| Money | Nothing is refunded by the return. If you already paid, the supplier owes you: let it reduce the next payment, or, if the supplier refunds you, book the refund with a journal voucher (Which voucher do I use?, Pay a supplier and what clears what) |
An invoice from XYZ Suppliers for 20 units at 1,000, plus VAT at 13%: 20,000 plus 2,600, which is 22,600. You have paid 10,000 against it, so 12,600 was due. Five units are damaged: on Purchase Return > Add, find the invoice in Ref. invoice no and lower QTY to 5. The return is 5,000 plus VAT of 650: 5,650.
| Area | Change in this example |
|---|---|
| XYZ Suppliers' account | Debited by 5,650: you now owe 6,950 |
| Purchase return ledger | Credited by 5,000 |
| Purchase VAT | Credited by 650: the VAT adjustment is reversed |
| Stock | 5 units leave the warehouse; 15 stay |
| The invoice | Due amount 6,950 (22,600 − 10,000 − 5,650) and Status Partial. Its Payment, Return, Edit and Delete buttons switch off |
What the screen checks
| Check | Message |
|---|---|
| The date is before the fiscal year starts | The financial year for this transaction date has already been closed, so you are not allowed to make a transaction on this date. |
| No product lines | Please provide data details to save the transaction. |
| A line's amount does not match quantity times rate | Amount based on quantity and rate is wrong. (Row: n) |
| A foreign currency has no rate | Please set the rate for the currency selected. |
| A line is more than the invoice had | Quantity can not be greater than the quantity in referenced voucher. |
| A product with batches has no batch details | Please provide batch no details of product |
| A product with serial numbers has none | Enter serial number details of product to proceed. |
After saving
Edit works until the return is approved (where approval is on) or its year is locked; with IRD on, a purchase return is not edited (delete it and make it again). Delete depends only on your role's permission: neither approval nor a locked year switches it off, so keep that permission for the people who correct purchases. A return posts at once even when approval is on (Approvals for purchases and vouchers). Deleting it brings the goods back into stock and puts the amount back on the supplier's account.
Common questions
The return saved but the invoice's Due amount did not change.
The return was made without Ref. invoice no. It lowers the supplier's balance but names no invoice. Delete it and make it again with the invoice, or leave it and let the supplier's statement show the credit.
I want to return only some of the goods.
Use Purchase Return > Add with the invoice, and lower the quantities. The invoice page's Return sends back every line.
The goods were already sold. Can I still return them?
The screen does not check the stock, so the return saves and the stock can go below zero. Check the stock first (When stock, products or production go wrong).
After the return I cannot pay the invoice from its page.
Once a return names the invoice, the invoice page's Payment, Return, Edit and Delete switch off. Pay the rest from Payment voucher, Against voucher: the invoice is still offered while something is due.
The supplier only lowered the price; no goods went back.
Use a debit note, not a return (Issue a debit note).