GlossaryRetail & Inventory
Purchase Return
Also called: return to vendor, purchase returns
What is Purchase Return?
A purchase return is stock sent back to a supplier because it is damaged, wrong, short-dated or surplus. It reduces both the stock on hand and the amount payable to that supplier.
Why Purchase Return matters
Returns that are not documented are the most common cause of a supplier ledger that will not reconcile — you deducted the value, the supplier never credited it, and both sides argue months later.
How Purchase Return works in practice
Raise a return document referencing the original invoice, obtain the supplier's credit note, and post both against the supplier account so the ledger and the stock record move together.
Frequently asked questions
The supplier issues a credit note for the tax adjustment; your input credit is reduced correspondingly.