Sooner or later a delivery arrives damaged, wrong, or short, and you need to send it back. Handling purchase returns properly makes sure you get the credit you are owed and that your stock and accounts stay accurate. Here is how to do it right.

What is a purchase return?

A purchase return is when you send goods back to a supplier — the opposite of a sale return. It reduces your stock and creates a credit or refund from the supplier, so both your inventory and your payables need to reflect it.

Common reasons for returns

  • Damaged or defective goods
  • Wrong items or quantities delivered
  • Goods that do not match the purchase order
  • Excess or unsold stock, where terms allow

The purchase return process

  1. Get authorization. Many suppliers require a return authorization (RMA) before accepting goods back.
  2. Document it. Record what is going back, why, and its value.
  3. Ship the goods back per the supplier's instructions.
  4. Get a credit note or refund and check it matches.
  5. Update your records — reduce stock and adjust the payable.

Accounting for purchase returns

A return must reverse what the purchase added: stock goes down, and either your payable to the supplier is reduced or you receive a refund. If you had already recorded the goods at their landed cost, make sure the reversal is consistent. Missing this step leaves your stock and payables overstated.

Best practices

  • Check deliveries on arrival so problems are caught early.
  • Keep authorization and shipping records in case of dispute.
  • Reconcile supplier credit notes against your returns.

Handle returns cleanly

RushFlow records purchase returns against the original purchase, adjusting stock and the supplier balance automatically — so your inventory and payables stay accurate and you always get the credit you are owed.