Purchase Return - Purchasing

A Purchase Return records goods you send back to a vendor because they were damaged, wrong or over-supplied. It is the reverse of a Purchase Invoice. When you post it, the system reduces what you owe the vendor, reverses the purchase and the VAT you had claimed, and takes the goods back out of stock.

When to use it

You received defective or wrong goods and are returning them to the supplier.
You over-ordered and the vendor accepts a return.

Before you start

The vendor must exist and must have a PAN on the vendor master (the same VAT rule as the invoice).
Ideally you are returning against a posted Purchase Invoice, so you can pull its lines in.

Where to find it

ERP > Accounts > Entry > Purchase > Purchase Return.

The fields on this screen

Section	Field (on screen)	What to enter	Required
Voucher Details	Miti	Nepali (BS) date of this document. Pick from the calendar - the AD date is filled in for you.	Yes
Voucher Details	Voucher Number	Numbered automatically when you save. Leave it blank unless you need to set the number yourself.	No
Voucher Details	Cost Center	Branch, project or department this document belongs to. Lets you report profit and cost per unit.	Yes
Voucher Details	Vendor name	The party this document is raised against. Their account is updated with the total amount.	Yes
Voucher Details	Remarks/Narration	Short note on why this entry was made. It shows on reports and makes the entry easy to find later.	No
Voucher Details	Voucher	Attach a scan or photo of the bill. You can then use AI to read the amounts straight off it.	No
Voucher Details	Ref.Doc	Link to a related document, such as the order or challan this bill came from.	No
Product Details	Product Name	The item being bought or sold. Type to search, or use + to create a new item.	Yes
Product Details	Sub Product	Optional variant of the item, such as size, colour or grade.	No
Product Details	Cost Center	Branch, project or department for this line only. Leave blank to use the one in the header.	No
Product Details	Remarks	Optional note for this line, such as a specification or batch detail.	No
Product Details	UOM	Unit the quantity is measured in - piece, kg, litre and so on.	No
Product Details	Qty	How many units. Amount is Quantity multiplied by Rate.	No
Product Details	Rate	Price for one unit, before tax.	No
Product Details	Amount	Quantity multiplied by Rate. Worked out for you.	No
Product Details	Taxable	Tick when VAT applies to this line. VAT is then calculated at the current rate.	No
Bill Terms	Charge / Term	An extra charge or deduction on the whole bill - freight, discount, service charge and the like.	No
Bill Terms	Rate	Percentage or fixed figure for this charge, depending on how the charge is set up.	No
Bill Terms	Amount	Value of this charge. It is added to or taken off the bill total.	No
Bill Terms	Remarks	Optional note explaining this charge.	No
VAT REGISTER	MITI	Date of the bill for the VAT register, in BS. It decides which maskebari month this entry falls in.	No
VAT REGISTER	PP.NO	Pragyapan Patra (customs declaration) number. Fill it only for an import.	No
VAT REGISTER	BILL.NO	The bill number printed on the other party's invoice, as it must appear in the VAT register.	No
VAT REGISTER	EXEMPT AMOUNT	Part of the bill that carries no VAT, such as exempt goods. Leave it 0 when everything is taxable.	No
VAT REGISTER	TAXABLE	Value the VAT is charged on, before VAT is added.	No
VAT REGISTER	VAT	VAT on the taxable value, usually 13 percent. Worked out for you.	No
VAT REGISTER	Remarks	Optional note for this VAT register line.	No
VAT REGISTER	VAT Transaction Type	How this bill is classified in the VAT return, such as Taxable Purchase Local or Taxable Sales Local.	No
Entry Details	Account Head	The account head this amount posts to. This is what puts the entry into your books.	No
Entry Details	Cost Center	Branch, project or department for this posting line.	No
Entry Details	Narration	Note for this posting line. It appears against the amount in the ledger.	No
Entry Details	Debit	Amount to debit this account. Total debits must equal total credits before you can save.	No
Entry Details	Credit	Amount to credit this account. Total credits must equal total debits before you can save.	No

How it works

Create the return. Pick the vendor and the item lines being sent back. To pull lines from the original posted invoice, use Return against Purchase Return on the items grid. Save, and the return is numbered automatically (PRN-...).
Submit, then Approve.
Post. Posting books the reverse accounting:
- Credit Purchase (reduce the expense),
- Credit VAT Input (reverse the VAT claimed),
- Debit the vendor (reduce what you owe). The goods also leave stock.

To undo a posted return, use Reverse Post. Void and Cancel are there for the other cases.

Worked example

Return 5 Steel Rods (of the 10 you bought) to Kathmandu Party A at 100 each (13% VAT):

Create: Vendor = Kathmandu Party A, line Product = Steel Rod, Qty = 5, Rate = 100 (Amount 500, VAT 65). Save.
Submit, Approve, Post. The system books Dr Kathmandu Party A 565, Cr Purchase 500, Cr VAT Input 65, and the entry balances.

Tips and common mistakes

Vendor, Date, Site, and each line's Product and Qty are required.
The vendor needs a PAN. If it is missing, the form links you to the master to fix it.
Posting is what books the reversal. A draft or approved return has not reached the ledger yet.
A return reduces what you owe the vendor. If the vendor then refunds you in cash, record that separately as a Receipt.

Purchase Invoice (what you are reversing), VAT Register report (where the return shows as a credit).