Purchase returns and debit notes

A purchase return — printed as a debit note — reduces what you owe a supplier after a purchase was finalized. Confirming it reverses the cost and the input tax; the supplier’s refund, if any, is recorded separately.

Create and confirm

1. Open Purchasing → Purchase Returns and select Create Return.
2. Pick the supplier and, optionally, the original purchase to pull its lines.
3. Adjust the lines (item or description, quantity, unit price, tax) and enter a reason.
4. Save as Draft or Save & Confirm.

Rules: confirmed returns against one purchase cannot exceed the purchase total, and returns cannot be raised against a Void purchase.

Accounting effect

Debit 2000 Accounts Payable (total) · Credit 1300 VAT Receivable (tax) · Credit 5000 Cost of Goods Sold (net). A discount on the original purchase is reversed with a debit to 4300 Discount Received.

Refund or keep the credit

• Refund — when the supplier pays you back, select Refund and enter amount, date, method and the account the money came into. Debit 1200 Cash / 1210 Bank, Credit 2000 Accounts Payable.
• Otherwise the credit stays on the supplier and is offered when you next record a supplier payment.

Statuses

Draft → Confirmed → Partially Refunded → Refunded; Void reverses a confirmed return (permission purchaseReturns.void).

Related

Sales returns and credit notes

Supplier payments