Creating Purchase Returns

Creating Purchase Returns

Purchase Returns in EquiBillBook allow you to process returns to suppliers, issue debit notes, and adjust stock in inventory. This guide will walk you through the process of creating a purchase return step by step.

Accessing Purchase Returns

To create a new purchase return:

1. Navigate to the Purchase module from the main menu
2. Click on Purchase Return or Returns
3. Click the "Create New" or "Add Return" button

Selecting the Original Purchase Bill

The first step in creating a purchase return is to select the original purchase bill:

• Search for Purchase Bill: Enter the purchase bill number or select from the list
• Purchase Details: The system will display the original purchase details including supplier, date, and items
• Return Date: Select the date when the return is being processed (defaults to today's date)
• Branch: Select the branch/location (if using multi-branch setup)
• Supplier: The supplier from the original purchase bill is automatically selected

Selecting Items for Return

Choose which items are being returned:

1. The system displays all items from the original purchase bill
2. Select the items that are being returned
3. Enter the return quantity for each item (cannot exceed the original quantity)
4. Review the unit price (usually matches the original purchase price)
5. Add any return reason for each item if required

Return Details

Configure the return details:

• Return Type: Select the type of return (e.g., Defective, Wrong Item, Excess Stock, Quality Issue)
• Return Reason: Select or enter the reason for the return
• Notes: Add any additional notes about the return
• Attach Document: Upload supporting documents if needed (e.g., return authorization, photos, quality reports)
• Invoice Number: Enter the return invoice number if applicable

Calculations and Adjustments

The system automatically calculates:

• Subtotal: Total of returned items before discounts and taxes
• Discount: Any applicable discounts (if the original purchase had discounts, they are typically adjusted proportionally)
• Tax: Tax amounts are calculated based on the return quantities
• Round-off: Round-off amount if configured
• Grand Total: Total debit amount to be issued to the supplier

Stock Adjustment

When you create a purchase return:

• If stock tracking is enabled, the returned quantities are automatically deducted from inventory
• Stock is adjusted from the location/branch where the purchase was received
• The stock movement is recorded in the stock history
• This helps maintain accurate inventory levels
• Quantity remaining and quantity sold are updated in purchase details

Debit Note Generation

A debit note is automatically generated when you create a purchase return:

• Debit Note Number: The system generates a unique debit note number
• Linked to Purchase: The debit note is linked to the original purchase bill
• Supplier Debit: The supplier's account is debited with the return amount
• Print/Email: You can print or email the debit note to the supplier
• Payment Adjustment: The debit note can be used to adjust supplier payments

Saving the Purchase Return

Once all information is entered:

1. Review the return summary and totals
2. Verify the items and quantities being returned
3. Check the debit note amount
4. Select the return Status (Draft or Final)
5. Click "Save" or "Create Return" to finalize

Return Status

Purchase returns can have different statuses:

• Draft: Return is being prepared but not finalized (stock is not adjusted)
• Final: Return has been processed, debit note issued, and stock adjusted
• Cancelled: Return has been cancelled (stock is restored if it was adjusted)

After Creating a Purchase Return

After creating a purchase return:

• A debit note is automatically generated and linked to the original purchase bill
• Supplier account balance is adjusted (debited)
• Stock is deducted from inventory (if stock tracking is enabled)
• Purchase records are updated for accurate reporting
• You can print or email the debit note to the supplier
• The return appears in purchase return reports
• Supplier payment due amounts are automatically adjusted

Partial Returns

You can process partial returns:

• Return only specific items from a purchase bill
• Return partial quantities of items
• Create multiple returns against the same purchase bill if needed
• The system tracks the total returned amount per purchase bill
• Quantity remaining is updated for each item returned

Direct Returns

You can also create direct returns without linking to a purchase bill:

• Select Direct Return option when creating a return
• Manually enter supplier and item details
• Useful for returns that don't correspond to a specific purchase bill
• Stock adjustments still occur if stock tracking is enabled

Tips for Creating Purchase Returns

• Always verify the original purchase bill before processing a return
• Double-check quantities to ensure they don't exceed the original purchase
• Select appropriate return reasons for accurate reporting
• Review stock levels before processing returns if inventory management is critical
• Keep documentation of the return (photos, authorization, quality reports, etc.)
• Ensure the supplier's account will be properly debited
• Use Draft status to prepare returns and finalize when ready
• Verify tax calculations match the original purchase tax structure

Troubleshooting

Can't find the Purchase Return menu?

• Ensure the Purchase module is activated in your account
• Check that you have the necessary permissions to create purchase returns
• Contact your administrator if you don't see the Purchase Return option

Stock is not being adjusted?

• Verify that stock tracking is enabled for the items
• Check that the items have stock tracking configured
• Review your inventory settings
• Ensure the return status is set to "Final" and not "Draft"

Debit note amount seems incorrect?

• Verify the quantities and prices match the original purchase bill
• Check if discounts or taxes are being applied correctly
• Review the original purchase bill to compare amounts
• Check round-off settings if there are minor discrepancies

Can't select items from purchase bill?

• Verify that the purchase bill exists and is not cancelled
• Check that items have remaining quantities available for return
• Ensure the purchase bill is finalized and not in draft status

Purchase returns are an essential part of managing supplier relationships and maintaining accurate inventory and financial records. Process returns promptly and accurately to ensure proper accounting and inventory management.