Purchase Returns

Purchase Returns

A Purchase Return document records the return of goods or services previously purchased from a vendor. It reduces the quantity of received items and updates the accounts payable or inventory balance, ensuring accurate financial and inventory records.

A Purchase Return can be created based on a Bill, in which case most of the fields are automatically populated from the Bill. Alternatively, a Purchase Return can be created from scratch.

Viewing the List of Purchase Returns

To view the list of Purchase Returns:
  1. Navigate to Purchases > Purchase Returns and Vendor Credits.



From the Purchase Returns and Vendor Credits List View, you can:
  • Create a new Purchase Return.
  • Email or Print a Purchase Return.
  • View related details, including: Transactions, General Journal, Inventory Journal, and Audit Logs.
  • Attach files to a selected Purchase Return.
  • Export the Purchase Return List to Excel, PDF, or other formats.
  • Manage columns: add, remove, or reorder.
  • Refresh the Purchase Returns and Vendor Credits List.
  • Create multiple custom views using: Filters, Sorting, Ordering, and Conditional Appearance Settings.

Viewing an Individual Purchase Return

To view a specific Purchase Return:
  1. Navigate to Purchases > Purchase Returns and Vendor Credits.
  2. In the Purchase Returns and Vendor Credits List View, double-click the desired Purchase Return.



From the individual Purchase Return, you can:
  • Edit the Purchase Return.
  • Email or Print the Purchase Return.
  • View related details, including: Transactions, General Journal, Inventory Journal, and Audit Logs.
  • Attach files to the Purchase Return.

Creating a New Purchase Return

To create a new Purchase Return:
  1. Navigate to Purchases > Purchase Returns and Vendor Credits.
  2. Click Create > New, or generate the Purchase Return from a Bill.
  3. Fill in the necessary details:
    Main Tab:
    • Vendor: Select from the drop-down list. If the vendor has an open Bill, a popup will appear asking you to apply the memo. To create an independent memo, close the popup.
    • Date: Adjust as needed.
    • Purchase Return #: Enter manually or let the system auto-assign.
    • Type: Select Return.
    • Reference Number (RMA/Ref #): Add additional references if necessary.



  4. Shipping Tab:
  5. Accounting Tab:
    • Specify the A/P Account.



  6. URL Tab:
    • Add a URL for reference, such as supporting documentation or vendor portals.



  7. Memo Tab:
    • Add an External Memo (visible on printed memos) or Internal Memo (internal use only).



  8. Line Details Table
    • Items Tab: Adding Product/Service Items.
      This option helps specify which products or services the memo applies to, ensuring proper inventory or service cost adjustments. For example, if returning goods, the inventory levels and associated costs are updated accurately.

      • Click Add to include items to return.
      • Enter Item from the drop-down.
      • Specify details: Quantity, UoM (Unit of Measure), and Cost.
      • Adjust the Return From Location, Reason Code, Project, or Class as needed.



    • G/L Accounts Tab: Adding G/L Accounts.
      Adding GL accounts allows for direct allocation of the credit to specific expense, liability, or revenue accounts. This ensures that the purchase return aligns with your chart of accounts and maintains accurate financial reporting.

      • Click Add to include GL Account lines.
      • Enter the GL Account code or description, Amount, Line Memo (optional), and Assign to a Project or Class (optional).



  9. Save changes using Save or Save and Close.

Creating a Purchase Return from a Bill

Purchase Returns may or may not be associated with a Bill. To associate a Purchase Return with a Bill:
  1. Navigate to Purchases > Bills.
  2. Select the relevant record.
  3. Click Create > Purchase Return > Set the type to Return. Fields will auto-fill based on the selected Bill.



Accounting Impact of Purchase Return

Recording a Purchase Return creates the following transactions in the General Journal:
  • Debits: Accounts Payable.
  • Credits: Expense Account or Inventory Account, depending on the nature of the credit (e.g., service, inventory, or adjustment). Tax Payables.
These entries ensure accurate tracking of purchase returns and maintain the integrity of your financial records.

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