This article explains how to return products to a vendor.
To return the products to your vendor, the most common method is to perform the following steps:
- Enter a negative purchase order
- Enter a negative receipt (out of the "returns" warehouse)
- Enter a negative purchase invoice when you receive the credit memo from the vendor
If you have the Business Activities Module (an add-on) for Return Merchandise Authorization (RMA), you can link the Purchase Order and Receipt Transactions as a related item. This will allow you to keep track of the returned product and related information by referencing the RMA number generated by the system. Refer to: How do I complete a RMA?
Create a Negative Purchase Order
- Select Purchasing > Purchase Order to open the Purchase Order window or use the Purchase Order icon on the Icon Bar.
2. Click the New button to create a new PO. The PO number is automatically assigned.
3.Click the Lookup button next to the Supplier field to select the vendor that the product originated from. The Supplier Address fields will automatically populate with the default vendor information. To override this address, click the pencil icon to open the Edit Address Info window.
4. Select the Warehouse the product is shipping from to update the Ship to Address. If you're utilizing the Returns warehouse, make sure to select this here.
5. Within the Detail tab, click in the Product ID field and either enter the item ID manually followed by pressing the tab key or lookup the item in the search window.
6. In the Ordered field enter order quantity as a negative amount.
7. Repeat steps 5-6 for each new item
8. When finished, click the Save button.
Enter and Post Negative Receipt
*Do this when ready to ship item to vendor
- There are 2 options to start the Inventory Receipt session:
- Open Purchase Order created above and click Receive
- Create a receipt session and select the Purchase Order to bring in the details by going to Inventory > Inventory Receipt > New
2. The Warehouse field will automatically populate based on the warehouse selected in the PO. This should be the warehouse the product was returned to.
3.Depending on your Purchasing Options, the product information will either populate or you will need to add manually.
4.The negative quantity of the product will automatically populate the Received field based on the quantity entered on the PO previously. Verify that the unit cost is the same as the original receipt.
5. When you are done, click the Post button. Feel free to Save and Print the report for review before posting.
6.A pop-up window will appear asking if you want to post your inventory transaction. Click Yes to post (update) the inventory.
7.The Inventory Receipts-Transactions Report window will open when you have successfully posted your inventory transaction, which will display the details of the posted session.
8.Select the appropriate buttons, to print or preview the report.
Enter Negative Purchase Invoice (Vendor Credit)
After you have received the credit memo from your vendor, enter the negative purchase invoice (vendor credit) to complete the process of accepting credit for returning the product to your vendor. The instructions for this step are the same as if you're creating a normal Purchase Invoice. Follow the steps lined out in this article. Before Creating the Invoice, verify the amounts are negative. Once this invoice synchronizes to QuickBooks, you'll have a Vendor Credit in the list.