What is Purchase Return?
A purchase return is goods sent back to the supplier because they were damaged, wrong, short-dated or unsold under an agreed return arrangement.
Updated
Meaning
English
A purchase return is goods sent back to the supplier because they were damaged, wrong, short-dated or unsold under an agreed return arrangement.
Roman Urdu
Purchase return matlab maal supplier ko wapas bhejna kyun ke woh kharab, ghalat, qareeb-ul-expiry ya tay shuda shart par na bika ho.
Also called return to supplier, RTV, return to vendor, supplier return.
Example
A bookshop returns 30 unsold copies of a guidebook to the publisher after the exam season, as agreed. Stock falls by 30 and the publisher's balance falls by their cost.
How it works
Every purchase return has two sides: stock goes out and the amount owed to the supplier goes down (or the supplier refunds). Recording only one side causes trouble. If stock leaves but the supplier balance is not reduced, the shop overpays; if the balance is reduced but stock is not, the shelf count is wrong.
Agree return terms with each supplier in advance: which items can come back, the time limit, and at what value. Keep the supplier's acknowledgement with the return, especially for near-expiry medicines and food.
In Nafaa
A purchase return in Nafaa takes the goods out of stock, including from their batches, and lowers the supplier's balance by their landed cost. The purchases list filters bills with returns.
Related terms
- Debit Note
A debit note is a document a buyer sends a supplier when returning goods or claiming a deduction, recording that the amount owed should go down.
- Accounts Payable
Accounts payable is the money a business owes its suppliers for goods or services it has received but not yet paid for.
- Expiry Management
Expiry management is the routine of tracking expiry dates, selling near-expiry stock in time, and removing or returning expired goods before they reach customers.
- GRN (Goods Received Note)
A goods received note records what actually arrived from a supplier, checked against the purchase order, before the stock is added and the bill is paid.