Purchase Return

Approve
POST to GL
Settlement

APPROVE (Purchase Return)

When Purchase return is approved, the TRADE CREDITORS – control A/C's sub account's (Supplier) credit available will be added the returned amount.

POST (Purchase Return)

When Purchase Return is posted to GL, the following accounting entries should be created.

GL Interface Type/[Account]	Account Usage	Sub-account	Currency	Dr	Cr	Notes
Returns	Ledger		Base		Standard Cost
Inventory/Accruals	Ledger		Base		Standard Cost
TRADE CREDITORS/Accounts Payable	AP	Supplier	Prime	(Purchase Price-Discount) + Tax
Accrued Purchases-Agents	Ledger		Prime	(PurchasePrice-Discount)*Commission%/100
Accrued Purchases-Sundries	Ledger		Base	AdditionalCost
Purchase Commission	Ledger		Prime		(Purchase Price-Discount)*Commission%/100
Purchase Discount	Ledger		Prime	Discount
GST-Input TAX	Tax		Prime		(PurchasePrice-Discount)*TaxRate/100	Incase of Import Taxes/Duties Payable Contra Should be Used
Purchase Variance	Ledger		Base		()Purchase Price*Exchange Rate)+Additional Cost-Standard Cost

SETTLEMENT Purchase Return

Once the Purchase return is settled, Trade creditor – control A/C's sub account's (Supplier) credit available will deduct the settled amount of money and the following accounting entries are created.

GL Interface Type/[Account]	Account Usage	Sub-account	Currency	Dr	Cr	Notes
CASH AT BANK	Bank		Prime	(PurchasePrice-Discount) + Tax
TRADE CREDITORS - CONTROL A/C	AP	Supplier	Prime		(PurchasePrice-Discount) + Tax

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Purchase Return

APPROVE (Purchase Return)

POST (Purchase Return)

SETTLEMENT Purchase Return

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Purchase Return

APPROVE (Purchase Return)

POST (Purchase Return)

SETTLEMENT Purchase Return

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