Purchase returns

A purchase return records goods you send back to a supplier. Saving it does three things in one journal entry: it takes the goods out of your stock at the cost you bought them at, takes off the VAT you claimed on them, and either lowers what you owe the supplier or records the refund.

Where: Purchases › Returns › Return goods
Number: PR-000001 for a return, PRREV-000001 for a cancellation. The prefix and length can be changed in Settings
Posts to: Inventory, Input Tax Recoverable, and Accounts Payable, or the cash or bank account the purchase was paid from, or Supplier Advances
Who: Managers and admins record and edit. Only admins delete or cancel

What it’s for

Send damaged or wrong goods back to the supplier, in full or in part.
Start from the purchase the goods came from. A purchase made from a matched supplier bill works the same way.
Return some units now and more later. The screen keeps count of what has already gone back.
Goods that were received but not yet matched to a bill are not on this list, and neither are cancelled purchases or imported opening balances.
To change what you paid for the goods, correct the purchase instead. See Purchases.

Fields

Choosing the purchase

Field	What it means	What it changes
Search purchase, supplier or invoice	The search box. Search by purchase number, supplier name or code, supplier invoice number, or the product’s name or code (up to 120 characters)	Lists only matching purchases
Return date	Defaults to today. Not before the purchase date, and not in the future	The date of the journal entry, the stock movement and the VAT. It also decides which purchases are listed: only those dated on or before it

The list shows Purchase, Supplier, Date, How it was paid and Lines left. Press Use this purchase on the row you want. A purchase appears only while some of its goods can still be returned.

Return goods

Field	What it means	What it changes
Original item	The product on the purchase line	Shown only
Net cost	The cost of one unit after discount. This is the cost the goods go back at	Shown only. The value of the return is worked out when you save
VAT	The line’s VAT rate	Shown only
Bought	Units on the original purchase line	Shown only
Already returned	Units that went back on earlier returns	Shown only
Available now	Bought less Already returned, counted as at the return date	The most you can return on this line
Return now	How many units go back. Leave it empty to keep a line out of the return	Stock out, VAT, and the amount you owe
Reason for return	Why the goods go back. Required, 3 to 500 characters	Kept with the return and shown in the list
What happens to the money?	Only for a purchase that was paid when it was bought. See Paid when bought	Which account the refund is booked against

The goods leave the stock location that received them. You cannot choose another one.

Edit return

Field	What it means	What it changes
Return date	The return’s own date. Not in the future	The date of the restated entry
Return reason	The reason shown in the list	Text only
Quantity	The new number of units on each line. Was shows the recorded number	Stock, VAT and the return total, worked out again
Reason for this change	Pick a reason or choose Other. Required, at least 3 characters	Kept in the return’s History

Buttons

Nothing touches your accounts until you press Save return in the review window.

Button	When you see it	What happens	Accounts
Return goods	Top of the Returns list; also in the ⋯ menu of a purchase and on a purchase’s page	Opens the screen above. From a purchase, it starts on that purchase	No change
Use this purchase	In the list of purchases	Shows that purchase’s lines	No change
Change purchase	After you chose a purchase	Goes back to the list. Quantities you typed are cleared	No change
Review return	After you chose a purchase	Opens “Review return” with the units, the money and the checks. It saves nothing	No change
Save return	In the review window	Records the return	Posts
Print return	On the result screen and in the list ⋯ menu. The return’s own page has Print ‹number›	Prints the return	No change
View return ‹number›, Back to ‹purchase number›, Return more goods	On the result screen	Open the return, go back to the purchase, or start another return	No change
Edit return	Return’s page (main button) or list ⋯ menu	Opens the edit screen. Update return then shows what will change and asks for a reason	Restated on its own date
Delete return	List ⋯ menu or the return’s ⋯ menu, admins only	Asks for a reason, then removes every effect of the return. The number stays, shown as Deleted	All effects removed
Cancel return	List ⋯ menu or the return’s ⋯ menu, admins only. It works only when the return can be neither edited nor deleted	Opens “Cancel purchase return ‹number› with a correcting entry?”. You choose the date and give a reason. Cancel purchase return saves it. Keep return closes it	Posts a correcting entry

Statuses you will see: Posted and Cancelled in the list. A deleted return no longer appears in the list. Its page shows “Deleted return” with its history.

What gets posted

Saving a return writes one journal entry, dated on the return date, and one stock movement for each line. The value of the goods is not shown before you save. The result screen shows it as Value of the goods returned.

Cost of the returned goods

Goods go back at the cost you bought them at: the line’s cost per unit after discount, plus any VAT you could not claim back. If the purchase price was corrected, the corrected cost is used.
The app does not use a new average cost. It checks that this cost equals what one unit of stock is worth today. That is the item’s average cost, or the value left at the location if you are returning its last units.
If the two match, stock and Inventory go down by exactly the same amount, and your profit does not change.
If later purchases at another price changed the average cost, the return is refused. See What the app blocks.
After the return, the average cost of the units you keep stays the same.

VAT

The VAT on the returned units comes from the original line’s rate and is taken off Input Tax Recoverable.
If you did not claim the VAT on the purchase, there is no VAT line. The VAT was part of the stock cost, so all of it goes back to Inventory (example 4).
The VAT is counted in the period of the return date, as a reduction of your input VAT.
The return that sends back the last units of a purchase also takes the last fils. Any round-off on the purchase is taken back with it. So is any difference between the supplier’s printed VAT and the calculated VAT. Examples 5 and 6 show the printed-VAT case.

What happens to the money

How the purchase was paid	Account debited by the return
Pay later	Accounts Payable. You owe the supplier less
Cash or bank, and you choose Refund received now	The cash or bank account the purchase was paid from
Cash or bank, and you choose Keep as supplier advance	Supplier Advances. No cash or bank balance changes

Example 1Part of a Pay later purchase goes backPay later · 5% VAT · 1 of 2 units

Bought: 2 units at 10.0020.00
Units returned1
Stock cost of the returned unit10.00
VAT on the returned unit (5%)0.50

Account	Debit (AED)	Credit (AED)	Why
2000Accounts Payable	10.50		You owe the supplier 10.50 less
1400Input Tax Recoverable		0.50	You claim 0.50 less VAT
1200Inventory		10.00	The unit leaves your stock at its cost
Total	10.50	10.50	Balanced

The purchase then shows Returned 10.50 and a balance due of 10.50. If the purchase had already been paid in full, the balance becomes minus 10.50. The purchase is then marked Supplier advance and its page says Supplier owes you. This label is not the same as an advance you paid ahead. See Suppliers.

Paid when bought

When a purchase was paid in cash or from a bank account, the screen asks What happens to the money?

Refund received now. This is the default. The app records that the money came back into the account the purchase was paid from. It does not collect the money. Make sure the supplier really paid it.
Keep as supplier advance. The supplier keeps the value for your next bill. No cash or bank balance changes. The value becomes a supplier advance you can use on a bill. See Supplier payments.

Example 2Refund received nowPaid from a bank account · 5% VAT · 2 of 10 units

Bought: 10 units at 100.001000.00
Units returned2
Stock cost of the returned units200.00
VAT on the returned units (5%)10.00

Account	Debit (AED)	Credit (AED)	Why
1020Bank Accounts (the account the purchase was paid from)	210.00		The refund comes back into that account
1400Input Tax Recoverable		10.00	You claim 10.00 less VAT
1200Inventory		200.00	The units leave your stock at their cost
Total	210.00	210.00	Balanced

For a cash purchase, the debit goes to the cash account it was paid from instead.

Example 3Kept as a supplier advanceSame purchase and return as example 2

Account	Debit (AED)	Credit (AED)	Why
1250Supplier Advances	210.00		The supplier holds 210.00 for you
1400Input Tax Recoverable		10.00
1200Inventory		200.00
Total	210.00	210.00	Balanced

The bank account does not change. One supplier advance of 210.00 is created, ready to use on a bill. A return kept as a supplier advance cannot be edited or deleted. See Fixing a mistake.

Example 4The VAT was not claimedPay later · 10 units at 20.00 · VAT 10.00 not claimed · all 10 returned

Bought: 10 units at 20.00200.00
VAT (5%) that was not claimed10.00
Cost of the stock, VAT included210.00

Account	Debit (AED)	Credit (AED)	Why
2000Accounts Payable	210.00
1200Inventory		210.00	The VAT was part of the stock cost, so it goes back with it
Total	210.00	210.00	Balanced

Returning in parts

When the supplier’s printed VAT differs from the VAT the app calculates by a few fils, each part is returned at the calculated VAT. The return that finishes the purchase takes the difference, so VAT and what you owe both end at zero. Here a purchase of 3 units at 33.33 carries printed VAT of 5.01, which is 0.01 more than the calculated 5.00.

Example 5First return: 1 of 3 unitsPay later · 5% VAT

Account	Debit (AED)	Credit (AED)
2000Accounts Payable	35.00
1400Input Tax Recoverable		1.67
1200Inventory		33.33
Total	35.00	35.00

Example 6Second return: the last 2 unitsTakes the remaining 0.01 of VAT

Account	Debit (AED)	Credit (AED)	Why
2000Accounts Payable	70.00
1400Input Tax Recoverable		3.34	3.33 calculated plus the 0.01 difference
1200Inventory		66.66
Total	70.00	70.00	Balanced

Together the two returns take off 105.00, the whole purchase, and 5.01 of VAT.

Editing and deleting

Edit return restates the return on its own return date, with the same number. Stock and VAT are taken out and posted again for the whole return. Example: a return of 2 units at 10.00 plus 5% VAT edited to 3 units becomes 31.50.
Delete return takes out every effect: the lines, the stock movements, the VAT and the journal entry. The units become available to return again.
Both ask for a reason, and the old and new values stay in the return’s History tab.

Cancelling a return

Cancel return adds a second entry that undoes the first. The return stays in the list as Cancelled, and its page links to the correcting entry. You choose the date of the correcting entry. It cannot be before the return, and it cannot be in the future.

Example 7Cancel a return on a Pay later purchasePurchase of 1 unit at 10.00 plus 5% VAT, returned, then cancelled

Account	Debit (AED)	Credit (AED)	Why
1200Inventory	10.00		The unit comes back into stock at the cost it left at
1400Input Tax Recoverable	0.50		The VAT is put back
2000Accounts Payable		10.50	You owe the supplier 10.50 again
Total	10.50	10.50	Balanced

For a return with Refund received now, the credit goes to the same bank or cash account the refund came into. The records show the refund as taken back. No real money moves, so put the real money right separately if the supplier did pay it back.

Example 8Cancel a return that was kept as a supplier advanceCancels example 3

Account	Debit (AED)	Credit (AED)	Why
1200Inventory	200.00
1400Input Tax Recoverable	10.00
1250Supplier Advances		210.00	The supplier advance is removed
Total	210.00	210.00	Balanced

This works only while none of the advance has been used on a bill.

Where it shows up

Place	What changes
The purchase	Returned shows the value sent back and the balance due goes down. If you had paid more than you now owe, it shows Supplier owes you. The row menu says “Everything on this purchase has already been returned.” once nothing is left
Supplier balances and statement	What you owe the supplier goes down, or the supplier shows as Supplier advance if they owe you. See Suppliers
Stock	A stock movement out of the purchase’s stock location, on the return date
Day book	One entry for the return. A return kept as a supplier advance moves no cash or bank money
Cash and bank	A return with Refund received now adds to the account the purchase was paid from
VAT return (Detailed Reports › Tax)	Input VAT goes down in the period of the return date
Profit and loss	No change, because the goods go back at their cost
Balance sheet	Inventory and Input Tax Recoverable go down. Accounts Payable goes down, or the refund account goes up

What the app blocks

These checks happen before anything is saved. A refused return leaves no half-written records.

When you record a return

Situation	What you see
No quantity on any line	Enter a return quantity for at least one line.
Quantity of 0	Quantity must be greater than zero.
More than Available now	Enter no more than ‹quantity›. or, from the server, Return quantity exceeds the quantity still available from the original purchase.
More decimals than the unit allows	‹unit› accepts whole-number quantities only. or ‹unit› accepts at most ‹number› decimal places.
Reason shorter than 3 characters	Enter at least 3 characters.
Return date before the purchase	Return date cannot be before the purchase date.
Return date in the future	Choose today or an earlier date in the company time zone.
Date inside a locked period	The accounting period is locked through ‹date›. Choose a later date, or ask an administrator to reopen the period.
A back-dated return takes more than was left on that date	Return quantity exceeds the quantity available on the selected return date. Reload the purchase or reduce the line quantity.
A back-dated return would break a later return	This backdated return would exceed the quantity available at a later return checkpoint. Choose a later date or reduce the return.
A back-dated return would leave a later payment too large	This return would make a later dated payment exceed the supplier balance. Choose a later return date or reduce the return.
Some of the units are no longer in stock	The return would make stock negative because some received units are no longer on hand.
Later purchases changed the item’s average cost	This item cannot be returned at its original purchase cost because the stock now has a different carrying value. No return was posted. Review later stock activity or ask an accountant to record the supplier adjustment.
The answer was lost, for example the connection dropped	The return result is not confirmed. Retry the saved request before starting another return. Retry sends the same return. It cannot be saved twice
No purchase can be returned	No goods are available to return and A purchase appears here after its goods are received, for as long as some of them can still be returned.
Return goods on a purchase with nothing to return	The menu entry is greyed out with Everything on this purchase has already been returned., An imported opening balance has no stock to return. or This purchase was cancelled. It stays in the history as it was.

When you edit, delete or cancel a return

When a return cannot be edited or deleted, the page says “‹number› cannot be edited” and gives the reason:

Situation	What you see
The return was deleted	This purchase return has been deleted.
The return was cancelled	This purchase return has already been reversed.
The return was made when an earlier purchase was cancelled or corrected	This purchase return already corrected an earlier purchase.
The return is in a VAT return with locked figures	This is in your filed VAT return for ‹period›, so it can’t be changed or deleted. Correct or cancel it with an entry dated today. The correction goes into your next VAT return. Administrators can do this, and managers whose role allows it.
The return’s date is in a locked period	The accounting period is locked through ‹date›.
The returned stock has already been sold or moved	Some of this returned stock has already been sold or moved. You can still change other details, or adjust the stock instead. You can still change the reason. You cannot delete the return
A later return uses the same purchase line	A later return uses the same purchase line. Correct or void the later return before changing this return’s date, quantity, or lines.
The return was kept as a supplier advance	This return was kept as a supplier advance, so it cannot be edited or deleted in place. Cancel the return and record it again.
Nothing was changed	The Update return button stays off, with Nothing has changed yet.
Someone else changed the return first	This purchase return was changed by someone else. Reload it to see the latest version.
The change reason is too short	Enter a reason with at least 3 characters.
The bank account is reconciled past the date	A bank account in this journal is reconciled through ‹date›. Undo that reconciliation first.
The cash account was counted past the date	This Cash account was already counted through the selected date. Undo its latest cash count or choose a later transaction date.
Cancel return while the return can still be edited or deleted	‹number› can still be edited or deleted, so it cannot be cancelled with a correcting entry. and Choose Edit return or Delete return instead.
The cancel reason is too short	Use at least 5 characters to explain why this is being cancelled.
The cancel date is before the return	Choose ‹date› or a later date. It cannot be before the return.
The cancel date is in a closed period	This date is in a closed accounting period. Choose a date in an open period.
The supplier advance was already used on a bill	The supplier advance kept from this return has already been used on a bill. Undo that use first (Supplier advance, then Undo), then cancel this return.
The return is already cancelled	This purchase return was already cancelled. Review the refreshed details.
The return was made when a purchase was cancelled	This return was made when a purchase was cancelled with a correcting entry, so it cannot be cancelled separately.

Who can do it

Action	Admin	Manager	Cashier
See the Returns list and a return, search, print	Yes	Yes	No
Record a return (Return goods)	Yes	Yes	No
Edit return	Yes	Yes	No
Delete return	Yes	No	No
Cancel return	Yes	No	No

These are the standard roles. Your administrator can give a custom role each action separately in Settings › Users & access.

Fixing a mistake

You saved a return with the wrong quantity, date or reason. Use Edit return. Change the quantity, the date or the reason, or take a line off with Remove this line in its ⋯ menu. You cannot add a new product to a saved return. Record another return for that. A line whose returned stock was already sold or moved is locked.
You returned the wrong goods, or entered the return twice. An admin uses Delete return. The number stays, shown as Deleted, and the units can be returned again.
Edit and Delete are not available. This happens for a locked period, a VAT return with locked figures and similar cases. An admin uses Cancel return. The correcting entry is dated between the return date and today. A new return can then be recorded.
You kept the value as a supplier advance by mistake. The return cannot be edited or deleted, and the app asks you to cancel it and record it again. If part of the advance was already used on a bill, undo that use first.
You forgot to return some units. Press Return goods again on the same purchase. The screen counts what has already gone back.
The supplier changed the price. A return does not change the price. Correct the purchase. See Purchases. Goods you return afterwards go back at the corrected cost.
The return is refused because of the cost. The app asks you to review later stock activity or ask an accountant. Returns go back at the purchase cost only.
The supplier did not pay a refund you recorded. An admin uses Delete return, or Cancel return when delete is not available. Then record the return again and choose Keep as supplier advance. The app records a refund. It does not collect the money.