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Purchase Returns

A Purchase Return is what you record in MyBooks when you send goods back to a vendor — for example, damaged or incorrect goods you received. In MyBooks, recording a Purchase Return and recording a Debit Note are the same action: "Purchase Return" describes the physical event (goods going back to the vendor), while "Debit Note" describes its accounting effect (reducing what you owe them).

When to Record a Purchase Return​

  • You received damaged, incorrect, or otherwise unsuitable goods and are sending them back to a vendor.
  • A vendor agreed to take goods back after you'd already recorded a Purchase Bill for them.
  • You need to reduce the amount you owe a vendor because of returned goods.

Recording a Purchase Return​

  1. Go to Transactions > Purchase Returns.
  2. Click Create Purchase Return.
  3. Select the Vendor.
  4. Add the Items being returned, with the quantities and the original cost price at which they were purchased.
  5. Confirm the Tax details — input tax credit is reversed automatically.
  6. Add a Notes field to record the reason for the return.
  7. Click Save.

Effect on Stock​

If the item is inventory-tracked, recording the Purchase Return removes the returned quantity from your stock on hand — the reverse of what happens when you receive the item on a Purchase Bill. Items that aren't inventory-tracked simply record the financial return with no stock impact.

Effect on the Vendor Balance​

Once saved, the Purchase Return is available as an open credit against the vendor. You can:

  • Apply it to an outstanding bill to reduce what you owe, or
  • Leave it as a credit balance to apply to a future bill.

For the full mechanics of applying a credit, tracking its status, and its GST/Input Tax Credit impact, see Debit Notes — a Purchase Return and a Debit Note in MyBooks are the same record, so everything in that guide applies here too.

Purchase Return vs. Debit Note — Is There a Difference?​

Not really — these are two names for the same transaction in MyBooks. Going to Transactions > Purchase Returns and saving a new return creates what your accountant would call a Debit Note. Use whichever term feels natural: "Purchase Return" for the physical goods going back, "Debit Note" for the accounting adjustment.

Plan Availability​

Purchase Returns are available on the Standard plan and above.